Sheinbaum Cancels IFT Auction, FIBRA Growth: The Weekly Roundup

In this week’s roundup, President Claudia Sheinbaum’s decision to cancel the IFT spectrum auction and restructure telecommunications regulation raises concerns about market stability and international agreements. On the real estate front, HR Ratings has reaffirmed FIBRA Danhos’ strong ratings, with projections of continued growth and strategic asset additions. 

Meanwhile, industrial FIBRAs are set to thrive despite tariff tensions, while Mexico City’s SEDEMA undertakes a crucial cleanup to protect water recharge areas. 

Your weekly dose of Infrastructure is here!

Sheinbaum Cancels IFT Spectrum Auction Amid Regulatory Overhaul

On Dec. 27, 2024, President Claudia Sheinbaum canceled the auction for 2,223 radio spectrum blocks following the dissolution of the Federal Telecommunications Institute (IFT), transferring its responsibilities to the Ministry of Infrastructure, Communications, and Transportation (SICT). This move raised concerns about legal certainty, market inefficiencies, and potential violations of international agreements like USMCA. Critics warn the changes could stifle competition and innovation, creating uncertainty for investors.

HR Ratings Confirms FIBRA Danhos’ HR AAA, HR+1 Ratings

HR Ratings confirmed FIBRA Danhos’ HR AAA rating with a Stable Outlook, highlighting growth driven by new assets like the Danhos Cuautitlan Industrial Park. The trust’s income and free cash flow are expected to continue growing, with projections for a leasable area of 1.5 million m² by 2029. While performance remains strong, a downgrade could occur if debt levels rise. FIBRA Danhos’ CBFIs are trading below their theoretical value.

Industrial FIBRAs to Grow Despite Trump Tariffs: MONEX

The industrial real estate sector is set to lead the market for the fifth year, despite tariff concerns. Investments in industrial FIBRAs remain strong, driven by nearshoring. Retail and office sectors are recovering, but challenges like trade tensions and inflation persist. The industrial sector is expected to maintain momentum in 2025, supported by high occupancy rates and favorable economic factors.

SEDEMA Removes Debris Affecting Water Recharge Area

Mexico City’s SEDEMA completed a cleanup in Sierra Santa Catarina, removing 23m³ of construction waste to restore rainfall runoff and prevent water pollution. This project protects a vital water recharge zone for the Eastern region, which filters rainwater despite limited rainfall.

Sheinbaum Inaugurates Jala-Puerto Vallarta Highway Final Stretch

Sheinbaum inaugurated the final stretch of the Jala-Puerto Vallarta Highway, reducing travel time between Guadalajara and Puerto Vallarta to 2.5 hours. The 33.2km stretch, costing US$98.68 million, includes eight bridges, 13 overpasses, and a branch to Puerto Vallarta Airport. This project boosts regional connectivity and economic growth, with additional infrastructure plans underway for Nayarit.

Chalco-Santa Martha Trolleybus to be Completed by April 2025

Sheinbaum announced that the Chalco-Santa Martha Trolleybus will open in April 2025, with remaining stations completed later. Delayed by drainage pipeline issues, the project features an electric transit model with dedicated infrastructure, integrating with existing trolleybus and Metro lines for improved connectivity.

State of Mexico Starts Construction of Mexicable Line III

The State of Mexico has begun constructing Mexicable Line III, a 9.5km cable car system with 10 stations to improve mobility for over 700,000 residents in Naucalpan. Connecting remote areas to the Cuatro Caminos terminal, it will cut travel times from one hour to 30 minutes, offering efficient, secure, and accessible public transportation.