Sheinbaum’s Vision, Business Developments: The Weekly Roundup

This week, President Claudia Sheinbaum discussed her infrastructure plans during her inauguration, which involve transformative changes in housing and transportation for economic growth. In other news, Oracle has launched a new Cloud Region in Monterrey, promising enhanced digital services and compliance for businesses across the country. 

Meanwhile, FibraShop successfully reduced its debt through a strategic loan prepayment, fueled by the sale of Kukulcan Plaza. Ares Management is set to strengthen its foothold in Mexico’s industrial real estate market through its acquisition of Walton Street Capital Mexico.

Your weekly dose of Infrastructure is here!

Sheinbaum Shares Highlights of Housing, Rail, and Industry Plans

President Claudia Sheinbaum’s infrastructure plan promises to transform Mexico’s housing, transportation, and economy. Key initiatives include building 1 million homes, reviving rail networks like the Mayan Train, and expanding industrial hubs and corridors to boost economic growth. She also aims to modernize highways, ports, and airports, strengthening Mexico’s trade and logistics capabilities. A focus on digital connectivity will ensure internet access for all, while cooperation with the United States will enhance cross-border infrastructure, she adds. 

Oracle Opens New Cloud Region in Monterrey

Oracle expands its presence in Mexico with a new Cloud Region in Monterrey, offering businesses improved digital services and lower costs. Governor of Nuevo Leon Samuel García highlights that the project will bring benefits for companies, universities, and the government, including faster IT processes and stronger data security. Oracle’s collaboration with Telmex-Triara will support over 24,000 companies in their digital transformation, with SMEs gaining access to innovations like AI and ML to boost competitiveness.

Debt Prepayment, Portfolio Expansion Drive Up FibraShop’s Value

FibraShop has bolstered its financial position with a MX$290 million loan prepayment, using proceeds from the sale of Kukulcan Plaza. This move, part of the company’s debt reduction strategy, lowers its loan-to-value ratio to 42.21%. In 2Q24, FibraShop reported a strong performance, with an 8.62% revenue increase and a 26.83% rise in its trust certificates (CBFIs) year-to-date. The company also expanded its portfolio to 19 properties through new acquisitions and partnerships, further strengthening its position in the Mexican real estate market.

Ares Management Acquires Walton Street Capital Mexico

Ares Management has acquired Walton Street Capital Mexico, boosting its industrial real estate presence with US$2.1 billion in assets. The deal, closing in late 2024, strengthens Ares’ strategy to tap into Mexico’s growing demand for warehouse space amid global supply chain shifts.

Merida, Monterrey, and Queretaro: Lamudi’s Top Housing Markets

Merida, Queretaro, and Monterrey top Lamudi’s 2024 list for home purchases, driven by strong demand and competitive markets. Cities like Solidaridad and Zapopan also show rising interest, offering real estate opportunities as they attract professionals and families through industrial growth and investments.

ARZYZ Metals to Invest US$650 Million in Nuevo Leon

Governor of Nuevo Leon Samuel García announced a US$650 million investment by local aluminum company ARZYZ Metals. This expansion project will create 1,300 jobs in the region and further strengthen the state’s industrial growth. ARZYZ will build a new industrial park featuring a technical school, daycare, and research center, highlighting the company’s commitment to both machinery and workforce development.