One of the most popular vehicles in the US for infrastructure investment is the master limited partnership (MLPs), which is very similar to the structure of CerPI and the Fibra E. The only difference between both vehicles is that CerPI will take on development risks associated with higher expected returns and the Fibras are more associated with stable infrastructure projects such as highway concessions. There will be a high capital allocation to infrastructure as part of Mexico’s National Infrastructure Program and this will also benefit CKDs and Fibras. Other strategic industries such as tourism need airports, water plants, highways, health institutions and so on. There is almost US$23.7 billion in capital from the Mexican pension funds targeting those projects. The Fibra regulation has certain fiscal benefits whereby if a portfolio is paid out with Real Estate Stock Certificates (CBFIs), private investors can defer their tax gains until they sell their CBFIs.
The acquisition of the newest DHL Supply Chain Mexico center has been successfully completed through Fibra Mty under a sale-and-leaseback operation.
“In the last 36 months, 10 new Fibras have entered the market and we rate nine out of those 10. Fibras will bring into the market new types of…
Fibras, CKDs and CerPIs are becoming ever more popular as a vehicle for Afores to invest in the infrastructure industry
Mexico Infrastructure Review asked leaders in infrastructure financing how these instruments will impact the country’s investing environment.