Consolidating Markets for GrowthWed, 11/01/2017 - 15:10
Q: What were the main challenges Planigrupo faced when switching from a private to a public company?
A: In 2016, we completed the shift from being a private company to a listed company on the Mexican Stock Exchange (BMV). Although there was a turbulent political and economic environment, most of the Afores in Mexico invested with us as part of that transaction. Not only have we met our business plan’s expectations but our growth exceeded all goals and objectives. Our EBITDA and net operating income were positive due to the various shopping centers that we sublet and operate in our portfolio. Last year we inaugurated Macroplaza in San Luis Potosi, Paseo Solidaridad in Hermosillo, Paseo Alcalde in Guadalajara and we are about to finish the construction of Urban Village and Paseo Hipodromo in Monterrey.
Q: What strategy does Planigrupo implement to ensure the success of its developments in various regions of the country?
A: Planigrupo caters to the largest segment of the country’s socio-economic pyramid, which is more than 80 percent of the population. Our developments focus on B- and C markets but we are currently developing a AAA project in Mexico City. Paseo Hipodoromo is located in front of the Chapultepec Golf Club in Conscripto. This is within one of the wealthiest neighborhoods in Latin America called Lomas Hipodromo. We are now among the developers in Mexico with the largest number of rentable square meters in the country. We are currently the third largest in Latin America with more than 800,000m2 and we would like to continue growing in the AAA segment.
Q: To what extent will Mexico’s commercial boom create a surplus in the market in the coming years?
A: Next year, experts speculate that there will be a surplus of offices in the market. Mexico is experiencing a boom in mixed- use development but the drive that creates these commercial spaces is the fact that there are offices above filled with potential customers. A decrease in occupation rates will definitely impact commercial spaces within these mixed-use projects. Mexico City represents 25 percent of the country’s GDP and eventually all of these spaces will be rented. Mexico has approximately 3ft2 of retail space per capita in comparison to the US, which has 20ft2 per capita.