International real estate firm Hines has announced the sale of industrial and logistics properties located in Mexico to Grupo IGS for an undisclosed amount.
(Press Release) Hines, the international real estate firm, announced the sale of a 2.9 million-square-foot portfolio of industrial and logistics properties to Grupo IGS. Financials on the deal were not disclosed. Savills represented Hines on the disposition.
The portfolio consists of 27 properties located in the northern markets of Mexico, including Monterrey, Ciudad Juarez, Matamoros, Reynosa and Torreon. Major tenants in the portfolio include: DalTile, General Electric, Yazaki, Sumitomo and Flextronics, among others. “The tenant mix and geographic diversity of this portfolio was a unique offering in Mexico,” stated Hines Director Rafael Garcia Rovirosa, who led the transaction for Hines.
This transaction marks another step in growth for the Grupo IGS industrial sector and demonstrates the organization’s ability to achieve scale and add value for investors.
The portfolio was one of the first investments made by a Hines separate account investor. Since Hines assumed management of the portfolio two years ago, Hines and its listing brokers—CBRE, Simons y Asociados, Citius Capital, and Newmark/Prodensa—were successful in taking the portfolio from 73 percent leased to 90 percent leased, while increasing the average lease rate in the portfolio by 20 percent.
“We worked extremely hard on the management and leasing of this portfolio. This strategic sale marks a significant accomplishment for our investment partner, for Hines, and for our leasing and management teams,” said Palmer Letzerich, Hines Senior Managing Director. “We are looking forward to redeploying capital in Mexico and continuing our Investment in the logistics sector.”