Grupo E Preps Mexican REIT

A group of Mexican property owners known as Grupo E is preparing Mexico’s first-ever real estate income trust. According to regulatory documents, the group plans to arrange a sale of the trust, known as a Fibra, early 2011. Regulators approved the asset class for sale in Mexico’s equity market earlier this year. The issuer does not indicate an expected size of the trust in its filing. The vehicle, known as Fibra Uno, consists of 12 industrial, commercial, office, and mixed use properties located throughout Mexico and totaling 484,000 square meters. They are owned by a group of 60-70 owners organized by Grupo E, which is led by the El-Mann family. Proceeds from the sale will be used to fund the acquisition of 5 additional commercial and mixed-use properties totaling 189,000 square meters. In accordance with Mexican regulations, the trust will distribute 95% of its income quarterly. The sale is set to begin marketing in January, aiming to close by the end of that month. Santander and Protego are managing the deal.