Terrafina Initiates Construction of 9,606 Square Meters (103,398 Square Feet) in Industrial Space Located in Apodaca, Monterrey and San Luis Potosi

MEXICO CITY--()--Terrafina (”Terrafina” or “the Company”) (BMV:TERRA13), a leading Mexican industrial real estate investment trust (“FIBRA”), externally advised by Prudential Real Estate Investors and dedicated to the acquisition, development, lease and management of industrial real estate properties in Mexico, today announced the development of an aggregate of 9,606 square meters (103,398 square feet) in Apodaca, Monterrey and San Luis Potosi; details are as follows:

  • The investment will result in a consolidated net return on investment of 13.7%,1 considering the following:
    • Consolidated investment is USD $5.3 million (net of VAT reimbursement)
    • Net operating income (NOI) of these investments will reach USD $723,661/year

Terrafina initiated construction of the following:

  • A 7,900 square meter (83,035 square feet) industrial built-to-suit (BTS) facility for a new tenant, located in the industrial submarket of Apodaca, Monterrey. The lease agreement has a 10-year term.
  • A 1,706 square meter (18,363 square feet) expansion for an existing tenant in San Luis Potosi. Similarly, the executed lease agreement has a 10-year term.

Alberto Chretin, CEO of Terrafina, stated,“In accordance to our growth plan, the northern region of the country continues to be a very important area of expansion for Terrafina and, as a company, we are very committed with the development of this region. As such, today we signed a very important agreement that will permit us to continue expanding our presence in this market and to capitalize on development opportunities thanks to Terrafina’s proprietary land bank, which enables us to deliver double-digit returns to our shareholders.”

1 Present performance is not an indicator to anticipate future performance.

About Terrafina

Terrafina (BMV:TERRA13) is a Mexican real estate investment trust formed primarily to acquire, develop, lease and manage industrial real estate properties in Mexico. Terrafina’s portfolio consists of attractive, strategically located warehouses and other light manufacturing properties throughout the central, Bajio and northern regions of Mexico. It is internally managed by highly qualified industry specialists, and externally advised by Prudential Real Estate Investors Latin America.

Terrafina owns 230 real estate properties, including 217 developed industrial facilities with a collective GLA of approximately 31 million square feet and 13 land reserve parcels, designed to preserve the organic growth capability of the portfolio.

Terrafina’s objective is to provide attractive risk-adjusted returns for the holders of its certificates through stable distributions and capital appreciations. Terrafina aims to achieve this objective through a successful performance of its industrial real estate and complementary properties, strategic acquisitions, access to a high level of institutional support, and to its management and corporate governance structure. For more information, please visit www.terrafina.mx

About Prudential Real Estate Investors

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, N.J., the company also has offices in Atlanta, Chicago, Miami, New York, San Francisco, Frankfurt, Lisbon, London, Luxembourg, Munich, Paris, Abu Dhabi, Mexico City, Hong Kong, Seoul, Singapore, Sydney, and Tokyo. The company also has a representative presence in Rio de Janeiro. PREI has gross assets under management of USD $55.8 billion ($41.8 billion net assets), as of March 31, 2014. For more information, please visit www.prei.com

About Prudential Financial, Inc.

Prudential Financial, Inc. (NYSE:PRU), a financial services leader with more than $1 trillion of assets under management as of June 30, 2014, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com

Forward Looking Statements

This document may include forward-looking statements that may imply risks and uncertainties. Terms such as "estimate", "project", "plan", "believe", "expect", "anticipate", "intend", and other similar expressions could be construed as previsions or estimates. Terrafina warns readers that declarations and estimates mentioned in this document, or realized by Terrafina’s management imply risks and uncertainties that could change in function of various factors that are out of Terrafina’s control. Future expectations reflect Terrafina’s judgment at the date of this document. Terrafina reserves the right or obligation to update the information contained in this document or derived from this document. Past or present performance is not an indicator to anticipate future performance.


Mexico City:
Francisco Martinez / Angel Bernal
Investor Relations Officer / Chief Financial Officer
+52 (55) 5279-8107 / +52 (55) 5279-8109
francisco.martinez@terrafina.mx / angel.bernal@terrafina.mx
New York:
i-advize Corporate Communications, Inc.
Maria Barona, +1 212-406-3691

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