Mall Fibra Prices at Bottom of Range

Mexican retail property-focused real estate fund Fibra Shop has priced an IPO that should raise MXP5.46bn ($437m), a deal landing at the bottom of its price range. Demand for the transaction, Mexico’s sixth Fibra, was heard at 1.5x-2.0x. The fund is selling 214m primary shares, assuming a 15% greenshoe, and 98m secondary shares at MXP17.50 each, according to people following the sale, versus a MXP17.50-MXP19.50 range. The primary proceeds will go to finance existing loans and real estate acquisitions, and to new purchases. Three property developers, Grupo Cayon, Grupo Aportante Frel and Grupo Central de Arquitectura are the secondary sellers. The trio is putting eight commercial properties into the fund to start. BTG Pactual, Actinver, and Bank of America Merrill Lynch were international leads, with Banorte joining on the local side. Fibra Shop is the sixth Fibra to enter the market. Mexican equity issuers have raised $9.71bn from 14 transactions so far this year, according to Dealogic, already setting a record for volume.