Vulcan Materials Will Not be Expropriated: The Weekly Roundup

This week, Mexican President López Obrador denied that the country was in talks to expropriate US company Vulcan Materials in Quintana Roo. Meanwhile, the construction of a hotel in the Calakmul reserve is drawing controversy and uproar over transparency and environmental integrity.

In other news, Terrafina finds itself courted by six suitors, suggesting a fierce battle for dominance amid industrial investment fervor. Furthermore, Queretaro takes center stage as the spearhead of Mexico's data center boom, driving innovation and economic prosperity.

Ready to dive in? Your weekly dose of Infrastructure is here!

López Obrador Denies Expropriation of Vulcan Materials Land

President López Obrador dismissed the idea of expropriating the quarry owned by US-based Vulcan Materials in Quintana Roo, despite escalating tensions between Mexico and the United States. This tension was triggered after US Secretary of State Antony Blinken warned that any expropriation could negatively impact Mexico's foreign direct investment (FDI).

Construction of Luxury Hotel in Calakmul Draws Criticism

The construction of a luxury hotel within the Calakmul natural reserve in Campeche by the Ministry of Defense (SEDENA) has stirred controversy due to concerns about transparency, financial irregularities, and potential environmental damage.

FIBRA Terrafina Attracts Competing FIBRAs' Interest

Terrafina, a Mexican Real Estate Investment Trust (FIBRA), has attracted significant interest from potential acquirers, with at least six companies expressing interest in acquiring between 10% and 100% of its Real Estate Trust Certificates (CBFIs). This surge in interest reflects the growing appeal of industrial real estate investment, driven by nearshoring initiatives.

Queretaro: Leading Mexico's Data Center Expansion

Queretaro has become a key hub for technological development in Mexico, particularly in the establishment of data centers. This growth not only attracts substantial investment and creates jobs but also fosters technological innovation, positioning Mexico as a relevant player in the global digital landscape.

Construction Performance Tumbles for Third Consecutive Month

The National Survey of Construction Companies (ENEC), which offers insights into Mexico's construction sector, indicated that the sector contracted by over 1.8% in March 2024, marking the third consecutive month of declining performance. Despite a 19.3% increase in the federal budget for public works in 2023, a projected 28.9% decrease in real terms for 2024 suggests a significant contraction in infrastructure works, which could impact the sector as a whole. 

FIBRAs Index Surges 15% Amid Nearshoring Boom

Mexican FIBRAs are capitalizing on the increasing demand fueled by nearshoring, expanding their property portfolios across various real estate segments. FIBRAs manage a vast array of properties covering over 35 million m² of gross leasable area (GLA), valued at approximately US$45.3 billion. 

Telcel Receives Generation Permit for Cogeneration Plant

Telcel has finally secured a generation permit from CRE to operate a cogeneration plant in Ixtlahuaca, State of Mexico. This plant, to be fueled primarily by natural gas, will house seven motor generators with a combined capacity of 7MW, aiming to produce an estimated 61.32GWh of electricity annually.