Prologis Property REIT Unchanged in First Mexico IPO of 2014Jonathan Levin
Prologis Inc.’s Mexico real estate investment trust closed the day almost unchanged in its trading debut after raising about 7 billion pesos ($541 million) in the nation’s first initial public offering this year.
Prologis Property Mexico SA, as the Mexico City-based REIT is formally known, rose 0.1 percent to 27.02 pesos in Mexico City trading today, after earlier climbing as much as 4.1 percent. The BMV Fibras index of Mexico REITs fell 0.2 percent, while the nation’s benchmark equity index, the IPC, retreated 0.4 percent. Prologis Property sold 258 million shares for 27 pesos apiece yesterday, according to a statement.
With manufacturing and logistics space for rent across the country, Prologis Property is positioning itself to benefit from rising demand after President Enrique Pena Nieto overhauled the constitution last year to lure investment.
To complete the offering, the REIT braved a market that hasn’t had an IPO since the U.S. Federal Reserve began reducing a record stimulus program. The company also proceeded with a share sale amid waning interest in real estate trusts.
Among the four REITs to raise a record $1.82 billion in Mexico last year, only office building and mall-owner Concentradora Fibra Danhos SA is trading above its IPO price. Administradora Sendero SA, the shopping-center company that was the last REIT to attempt an IPO, pulled its 5.3 billion peso sale on pricing day in November.
Parent company Prologis, based in San Francisco, rose 0.8 percent today to $41.48, giving it a market value of about $21 billion. The company manages more than $27 billion of assets in the Americas, Europe and Asia, according to its website.