Prudential Wraps Up CCD

Prudential Mexico has raised MXP3.7bn from the sale of Certificados de Capital de Desarrollo (CCDs) in Mexico’s domestic market, according to a source familiar with the deal, the largest CCD this year. The 10-year transaction supports a real estate fund making investments in industrial assets in Mexico during a 5-year period. The CCDs priced at MXP1 each, according to regulatory documents, and the deal offers a return profile in line with private equity industry standards. Investors get their initial investment plus a preferred return, in this case 12%, and proceeds are divided 80% to holders and 20% to Prudential. Prudential is heard putting MXP600m of its own capital into the deal. It had been aiming to raise MXP4bn, also including its own contribution. It is Mexico’s second real estate CCD, after a MXP3.3bn transaction from AMB closed last month, and the largest so far in that space. Prudential has raised 2 previous industrial funds in Mexico through traditional PE means, among 7 real estate funds totaling about $2.4bn in equity commitments. BBVA Bancomer managed the transaction. Also expected to close in the next 6 weeks are infrastructure fund CCDs from LatAm Capital Advisors and I Cuadrada.