According to reports by Fox Business and Reuters,among others,the Mexico real estate corporation and stock market newcomer Vesta has announced plans to invest at least $400 million over the next three years. The funds will be used to fuel expansion and will rely in part on the $200 million raised in the firm’s primary stock offering last week,as well as an additional $200 million from debt instruments that will complete its investment plan.
According to Fox,the company has no plans at this time to expand internationally,as “there is a lot of space to grow in Mexico,” according to a statement by Vesta’s Chairman and CEO Lorenzo Berho. “Among plans for expansion are multi-tenant developments that cater to companies that need ready-made facilities to set up quickly,build-to-suit developments and park-to-suit developments that serve specialized supply chains,such as the auto industry.”
The company plans to expand its already successful business of building customized industrial parks. Much of its property is located in and around the aerospace sector in Mexico’s Queretaro state and includes high-profile tenants such as Bombardier,which is the world’s largest manufacturer of corporate jets,and Meggit,which is one of the industry’s major suppliers.
Vesta is currently one of the largest industrial real estate developers in Mexico,owning 85 properties in 11 different states,most of which are located in central and northern Mexico. The company is also focused on acquisitions,hoping to snatch up attractive properties with excellent tenants that are currently owned by small to medium sized developers.
“Being a publicly traded company opens a way that before was harder to get access to; the public debt market,” shared Vesta Chief Financial Officer Juan Scott. “It’s something we will consider when the time comes.”
Last week Vesta shares were at 19 pesos,and they have since risen to 19.06. According to Fox News,if all over allotments from the IPO are exercised,the $255 million secondary share offering is expected to rise to $292 million.