A FIBRA is a trust that is in charge of leasing and managing a portfolio of real estate (residential, office buildings, shopping malls, hotels, hospitals, etc.). It is structured so that these properties are diversified by property type and by number, type of tenants and geographical location.
Investment real estate has been booming with the strong Mexican economy. The economic stability that has existed in the past presidential administrations has allowed the real estate market to be perceived, both domestically and abroad, as a safe investment and with attractive returns.
FIBRAs are intended to:
• Promote real estate development in Mexico
• Opens up investing in real estate to all investors
• To boost funding for various commercial and industrial segments
FIBRAs are revolutionizing the real estate market. For example, in 2014 these trusts reached a record high of $51,782’000,000 pesos.
“The market has totally changed,” said Hector Klerian, Director of JLL, a firm specializing in real estate in Mexico.
Data from the Bank of Mexico shows that mid-2014, 56.2% of FIBRAs were from foreign investors and only 15.4% came from private funds.
In shopping centers, an estimated 60 percent of the largest commercial centers in Mexico are private, in a latent opportunity to purchase or partnership for the Trusts.
At MEXLend, we are here to properly advise our clients and take care of your investment from the outset. We can find you residential loans in Mexico meet your needs and exceed your expectations.
