Kimco Realty Corp., the largest U.S. shopping-center owner, and a joint-venture partner agreed to sell their stakes in 87 Mexican industrial properties to a local real estate investment trust in a $600 million deal.
Kimco and American Industries will sell their interests in trusts that hold the buildings to Terrafina, a Mexico City-based REIT advised by Prudential Real Estate Investors, the companies said in a statement today. The trusts are valued at about $294 million, with mortgage debt of $306 million.
The portfolio comprises about 11 million square feet (1 million square meters) of space used mainly for manufacturing in the automotive, aerospace and consumer-goods industries. The deal will make Terrafina the largest owner of industrial assets in Mexico, with more than 30 million square feet and 233 buildings, the company said in a separate statement.
“The addition of these assets contributes to the diversification of Terrafina’s portfolio in terms of industry location and tenants,” Chief Executive Officer Alberto Chretin said in the statement.
Kimco, based in New Hyde Park, New York, has been selling non-retail properties to focus on its neighborhood shopping center portfolio. The REIT also earlier this week said it sold nine Mexican shopping centers to a local real estate operator for 3.35 billion pesos ($268 million).
“The real estate capital markets in Mexico have surged and we are taking advantage of sharply higher prices to sell some of our assets,” David Henry, Kimco’s CEO, said on the company’s earnings conference call on May 2. “We anticipate additional sales, if the markets remain strong.”
Kimco holds a 50.7 percent interest in the industrial buildings, with American Industries owning the remainder.