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Terrafina to purchase portfolio of industrial properties from Kimco Realty and American Industries for about $600 Million

Thursday, May 23, 2013 10:00 AM

Terrafina to purchase portfolio of industrial properties from Kimco Realty and American Industries for about $600 Million

Terrafina (BMV: TERRA13), a Mexican real estate investment trust advised by Prudential Real Estate Investors, will purchase a portfolio of Mexican industrial properties from Kimco Realty Corp. (NYSE:KIM) and its joint venture partner, American Industries for about $600 million, the company announced today. PREI® is the real estate investment management and advisory business of Prudential Financial, Inc. (NYSE: PRU).

The portfolio consists of 87 properties totaling about 11 million square feet that are occupied by a diverse range of multi-national tenants. The facilities are predominantly for light manufacturing in the automotive, aerospace and consumer goods sectors.

“The addition of these assets contributes to the diversification of Terrafina’s portfolio in terms of industry location and tenants,” said Alberto Chretin, CEO of Terrafina. “And it is perfectly aligned to Terrafina’s strategy to grow the portfolio through accretive acquisitions as a consolidator vehicle for quality industrial assets.”

With the addition of this portfolio, Terrafina grows to 233 properties with more than 30 million square feet of industrial space, making it the largest owner of industrial assets in Mexico, based on gross leasable area (GLA).

“This acquisition establishes Prudential Real Estate Investors’ ability to source quality properties and integrate them into Terrafina’s existing portfolio,” said Alfonso Munk, PREI’s head of Latin America. “The quality of these properties and the strength of the industrial sector in Mexico made this an extremely attractive transaction.”

Closing is subject to shareholder approval. Terrafina, which expects the transaction to be completed by the third quarter of 2013, will pay for the portfolio through existing credit facilities and the assumption of the existing debt on the portfolio.

Terrafina will hold a conference call for its investors at 1 p.m. EDT on Thursday, May 23 to discuss the transaction. The details are as follows:

Teleconference Dial-In Number(s):
USA Participant: (800) 762-7308
International Participant: (480) 629-9025
Start Time: 12:00p.m. Central/1:00p.m. Eastern

Terrafina (BMV:TERRA13) is a Mexican real estate investment trust formed primarily to acquire, own, develop and manage real estate properties in Mexico. Terrafina’s portfolio consists of attractive, strategically-located warehouses and other light manufacturing properties throughout the central, Bajío and northern regions of Mexico.

Terrafina owns 146 real estate properties, including 132 developed industrial facilities with a collective GLA of approximately 19.8 million square feet and 14 land reserve parcels.

The company has approximately 180 lease agreements with tenants that include international, national, regional and local companies. Additional information is available at http://www.terrafinafibra.com.

Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that owns and operates North America’s largest portfolio of neighborhood and community shopping centers. As of March 31, 2013, the company owned interests in 895 shopping centers comprising 131 million square feet of leasable space across 44 states, Puerto Rico, Canada, Mexico and South America. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 50 years. For further information, please visit www.kimcorealty.com, the company’s blog at blog.kimcorealty.com, or follow Kimco on Twitter at www.twitter.com/kimcorealty.

PREI is a leader in the global real estate investment management business, offering a broad range of investment vehicles that invest in private and public market opportunities in the United States, Europe, the Middle East, Asia, Australia and Latin America. Headquartered in Madison, New Jersey, PREI has other offices in Atlanta, Chicago, New York, San Francisco, Miami, London, Lisbon Luxembourg, Frankfurt, Munich, Paris, Istanbul, Abu Dhabi, Mexico City, Sao Paulo, Beijing, Hong Kong, Seoul, Singapore and Tokyo. In addition, PREI has representatives in Milan and is establishing a presence in Sydney (pending regulatory approval). As of September 30, 2012, the company managed approximately $51.2 billion in gross real estate assets ($34.6 billion net) on behalf of more than 490 clients worldwide. Its gross assets in Latin America total $3.6 billion ($2.4 billion net). For more information, visit http://www.prei.com.

(Source: Business Wire )
(Source: Quotemedia)


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