Acquisition and Asset Management: FINSA Industrial Parks

Gabriel was the analyst for AIG Global Real Estate Investment Corp’s entity-level investment in FINSA, a Mexican industrial development and operating platform that owned and operated 5 million square feet in eight industrial parks.  The parks were primarily used for manufacturing purposes and located throughout Mexico with distribution centers in South Texas.  The opportunistic investment sought to capitalize on the arbitrage in industrial cap rates between the US and Mexico. The exit strategy anticipated a compression in cap rates based on increased buyer interest in Mexican industrial real estate from foreign investors and Mexican pension funds.  

After the initial investment closed, Gabriel transitioned from analyst to asset manager and the portfolio grew by 2 million square feet through organic growth and acquisitions.  A roll up and sale of the portfolio was realized with a 275 bp compression in cap rates validating the original investment thesis. Below is summary information on three of the industrial parks.

FINSA PUEBLA INDUSTRIAL PARK

Development began in 1992. Dedicated to "just in time" suppliers to the largest Volkswagen plant outside of Germany. 

26 clients, 41 leases, 28 buildings.

1.3 M SF

Major tenants include: Duroplast, Lear Corporation, Johnson Controls

FINSA QUERETARO INDUSTRIAL PARK

Development began in 1994.  

3 clients, 7 leases, 5 buildings. 

950,000 SF of GLA

Major tenants include: Delphi Automotive, American Racing

FINSA REYNOSA INDUSTRIAL PARK

Located on the US Mexico border across from McAllen-Harlingen Texas.

Development began in 1987

11 clients, 14 leases, 13 buildings

826,000 SF of GLA

Major tenants include: Corning, Labinal, Global Data Solutions