Fibra Uno will invest up to MXN10.4bn ($620.3m) into outstanding contracts backing the construction and expansion of up to seven portfolios over the next 15 months.
The Mexican-style real estate investment trust (REIT) will tap existing certificados bursatiles fiduciarios inmobiliarios (CBFIs) to finance the project costs, Jorge Pigeon, Fibra Uno’s vice president of capital markets and investor relations, said.
The fibra may also use proceeds from recent debt and equity issuances if needed, Pigeon said at a press conference in New York last Thursday.
Fibra Uno priced a MXN10bn dual-tranche bond in February and raised MXN32.8bn in an equity follow-on offering in June 2014. In October, the fibra added $50m to its dual-currency revolving credit facility. Lenders Bank of America-Merrill Lynch, BBVA Bancomer, Credit Suisse, Goldman Sachs, HSBC, Itau BBA and Santander increased the US dollar-denominated portion to $410m from $360m. The initial agreement was signed in July.
Fibra Uno also seeks to finalize the investment and construction of its Mitikah retail and residential complex in southern Mexico City by mid-2016. The company has invested about $185m in construction, land and permits for the complex, which it acquired from financial services firm Prudential. Mitikah comprises a retail facility, residential area, luxury hotel and the new headquarters for BBVA Bancomer.
The fibra has not earmarked any specific dates to revisit debt or equity capital markets. It could however, target shorter-term, floating-rate bond issuances in the “not too distant future,” Pigeon added.
For example, the Mexican real estate investment trust could use a 10-year fixed-rate, dollar-denominated bond, which could be swapped into pesos at a floating rate, in order to keep its exposure in pesos.