FIBRA NEXT Could Launch IPO in Late November

FIBRA NEXT, the industrial-focused spin-off of FIBRA UNO, Latin America's largest and oldest Real Estate Investment Trust (FIBRA), is reportedly in the process of going public through the Mexican Stock Exchange (BMV) by late November 2023.

On Oct. 18, 2023, MBN reported that after a unanimous vote, FUNO Real Estate Trust Certificates (CBFI) holders voted in favor of the creation of an industrial FIBRA, originating from segregating industrial properties from the FIBRA’s current portfolio, which would facilitate investments or co-investments. At the time, the company did not disclose an exact date when FIBRA NEXT would launch its initial public offering (IPO) at BMV. 

However, according to Bloomberg Linea reports, it is likely that the IPO, which is set to become Mexico's largest initial public offering since 2018, will set its price some time after the Thanksgiving holiday in the United States, as the company strives to generate sufficient investor interest at the desired valuation. The FIBRA sought to raise US$1.5 billion, but this could go down to US$1 billion, as reported by an anonymous source.

FIBRA NEXT is FUNO’s bet on nearshoring. It is expected to be one of the largest FIBRAs of its kind, as industrial properties constitute the largest portion of FUNO’s portfolio (54.5%), followed by retail with 27.4%, offices with 10.3%, and others with 7.7%. Furthermore, according to El Economista, FIBRA NEXT’s portfolio could consist of 80 properties, spanning 6 million m² of gross leasable area (GLA), an occupancy rate of 97.6%, and the possibility of generating over MX$7.5 billion (US$416.2 million). However, some investors are worried about the potential of the FIBRA’s properties, as most of them are located in the central part of the country and are more oriented to serve logistics clients, rather than industrial ones, said an anonymous investor to Bloomberg Linea. 

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