In a positive turn of events for U.S. real estate investors who feel as though the market is just not performing the way it could, Mexico offers an enormous opportunity, reported Forbes. In fact, according to the exchange-traded fund industry’s new Tierra Funds, Mexico and Latin America are now the new hot spot for real estate investors.
“Tierra Funds rolled out the first ETF investing solely in real estate investment trusts (REITs) and real estate operating companies (REOCs) in that region,” wrote Forbes. “Tierra XP Latin America Real Estate ETF (LARE) debuted in December with about $2 million in assets.”
According to James Anderson, who serves as managing principal of Tierra Funds, real estate investors should take a much closer look at places like Mexico in Latin America, which is part of the driving force behind launching the new fund.
“We expect the REIT market to grow significantly over the next five to ten years as the local capital markets become the go-to place for real estate financing,” Anderson told Forbes. “My partners and I have been active in the Latin America region since the early 1990s. My partner and I began our careers in Mexico City.”
The new LARE fund is reportedly a “passive product” that works to trade the Solactive Latin American Real Estate Index, which has 52 components and is weighted 39 percent in Mexico. The index also represents most major public owners, operators, developers and real estate service providers.
“Latin America is becoming a favorable spot for investors looking to expand their portfolio or grow their businesses,” wrote the Latin Post. “Among well-established companies pouring money into the region include trade company Terra Funds in real estate and AT&T in telecoms.”
By 2018, AT&T is set to roll out more than 6,000 kilometers of fiber operations to boost wireless connectivity in Mexico, bringing its comprehensive platform and advanced telecom solutions to targeted sites. The telecommunications giant has set the goal of reaching at least 100 million businesses and consumers by 2018.
“By bringing the entire scope of the AT&T capabilities to bear, we’re helping our customers turn trade-offs of the past into combination plays of the future.” AT&T chief marketing officer Steve McGaw told the Latin Post. "Our software-centric network lets us create and deploy integrated solutions faster, infusing agility into our customers’ own operations. That means a competitive advantage.”
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