Commercial Developer Prices Fibra

Mexican developer Grupo Danhos has priced an IPO of its Fibra real estate fund that should raise MXP5.98bn ($454m), with the deal coming at the bottom of the range. The developer is selling 200m primary shares at MXP26.00 each, according to people familiar with the matter, meaning a MXP5.98bn total assuming a 15% greenshoe is included. The price comes versus a MXP26.00-MXP28.00 price range. Roughly 40% of the deal was expected to be placed with international investors, and the remainder in Mexico. The Fibra Danhos fund begins with four shopping centers, four office buildings and three mixed-use properties, all in Mexico City, and is raising money to expand them and to add to the portfolio. The developer was betting that a combination of office and commercial properties focusing on “premier” tenants – its list includes OHL, Cinepolis, Liverpool, the IDB, Sanluis, Grupo Sura, Cisco and Alsea – would distinguish it enough from existing Fibras to attract investors who may have had their fill of the growing asset class, which now features a few deals trading below original offer price. BBVA and Goldman Sachs were global coordinators on the transaction, with Evercore as structurer and domestic bookrunner and Banorte-Ixe and Inbursa as co-managers. The deal brings Mexico’s ECM issuance total, already at a record level, to $10.48bn from 16 deals so far this year, according to Dealogic data. Hotel operator Grupo Hotelero Santa Fe was also due to price an IPO Tuesday night, targeting MXP4bn.