Fibra MTY offers 500M CBFIS in $425M Mexico share sale: terms

Fibra MTY offers 500M CBFIS in $425M Mexico share sale: terms

Fibra MTY Completes $500 Million CBFI Offering in Landmark International Debut

Mexican real estate investment trust Fibra MTY has completed an international offering of Real Estate Trust Certificates (CBFIs) valued at approximately $500 million, marking its debut in global capital markets. The transaction, structured under Rule 144A and Regulation S, is reported to be the largest international IPO originating from Mexico in the past five years.

Fibra MTY, established in 2014, specializes in acquiring and managing industrial, retail, and office properties across 14 Mexican states, with a strategic focus on northern regions. The trust currently oversees over 1.6 million square meters of gross leasable area. Proceeds from the CBFI issuance will fund property acquisitions, capital expenditures for property improvements, expansion costs, and general corporate purposes.

The offering, led by global coordinators Citigroup, BTG Pactual, and Goldman Sachs, reflects growing international interest in Mexican real estate investment vehicles. CBFIs are listed on the Mexican Stock Exchange, providing liquidity and diversification opportunities for global investors.

Baker McKenzie served as legal counsel to Fibra MTY, with a team led by partners Mike Fitzgerald, Arturo Carrillo, and Pedro Reyes. Additional support was provided by tax partners Thomas May and Amir-Kia Waxman, alongside associates Carolina Gonzalez and Nicole Gresati-Fernandez. Other legal participants included Simpson Thacher (underwriters' New York counsel), Mijares (issuer's Mexican counsel), and Creel (underwriters' Mexican counsel).

This transaction follows a non-U.S. private placement of CBFIs by Fibra MTY in 2022, underscoring the trust's ongoing efforts to diversify funding sources and expand its portfolio. The offering highlights the potential of Mexico's real estate market to attract international capital, particularly in sectors such as industrial and logistics, which have seen increased demand amid regional economic growth.

(https://www.bakermckenzie.com/en/newsroom/2024/03/fibra-mty-in-its-approximate-500million): Baker McKenzie, March 2024