Prologis, Inc., which is a leading owner, operator and developer of industrial real estate worldwide, has announced that it will contribute more than $293 million to a real estate investment industrial portfolio that is comprised of facilities in Mexico. In addition, Mexico real estate received an added boost when Prudential announced it would provide more than $160 million in financing for the 5.3 million-square-foot industrial portfolio, which includes facilities in Guadalajara, Mexico City and Monterrey.

“I am very pleased with the way this transaction has come together, said Luis Guiterrez, president of Prologis for Latin America, discussing real estate investment property. “This is the largest industrial real estate transaction completed in Mexico to date with Mexican pension fund proceeds. This is a terrific opportunity for our investors to deploy capital and acquire high-quality assets in global markets. Industrial real estate in Mexico is an attractive investment due to the country’s high economic growth, expanding consumer demand, young population base and the recognized need for state-of-the-art supply chain infrastructure.”

As the first industrial venture of its kind, Prologis Mexico’s fund strategy is to develop, own, operate and manage real estate investment properties in Mexico. Perhaps this is why Prudential Mortgage Capital Co. recently provided more than $160 million in funding for refinancing real estate investment property throughout Mexico City and Guadalajara. Although residential rental properties are more often the focus of Mexico real estate investment, the Prologis industrial portfolio is viewed as a good risk by Prudential, which offered the company a five-year, fixed-rate loan, thanks to the quality of the modern buildings included in the portfolio and the consistently strong tenancy of the properties.

“It was all of these factors, plus Mexico City and Guadalajara are considered the best industrial markets in Mexico,” said Frederick van Overbeek, a principal with Prudential. Overbeek reportedly led the deal, which involves a variety of Mexico real estate, with the help of company director Elizabeth Velazquez. The real estate investment property that is involved in the deal with Prudential incorporates more than 20 warehouses and distribution facilities that boast an occupancy level upwards of 95% and tenants that include national and multinational businesses.

It seems obvious that the industrial real estate investment sector is growing in Mexico and is becoming competitive with China and other markets around the world. “Mexico’s manufacturing sector has also demonstrated solid growth, which generates demand for industrial properties,” shared Overbeek. This environment of positive growth points to promising times ahead for Mexico real estate in all sectors.