– Sold Property At An Approximate Cap Rate Of 7%
– 23% Above Acquistion Cost And 5% Over Appraisal Value
MEXICO, CITY, MEXICO, January 10, 2019 – FibraShop (FSHOP) (BMV: FSHOP13), FibraShop (FSHOP), CI Banco S.A. Institución de Banca Múltiple, Fideicomiso Irrevocable número F/00854, the first real estate investment trust specialized in shopping centers, yesterday closed the sale of Urban Center Condesa.
Located in Mexico City, Urban Center Condesa currently has a 100% occupancy rate. The sale price amounted to approximately 5% above the book value and 23% above the initial contribution price. The implicit CAP rate for this transaction was close to 7%. The purchaser, Series Retail Holdings, is a company focused on the acquisition and operation of properties in the metropolitan area of Mexico City. Series Retail Holdings is supported by an international private equity fund with more than USD$ 8 billion under management.
The transaction shows that the book value of the company’s assets is in line with current market prices. In the past few years, FibraShop has consolidated its portfolio through expanding properties, growing the occupancy rates, renewing contracts at prices above inflation, and generating additional revenues related to parking fees and advertising spaces, which, together with cost efficiency led to higher net operating income at our properties. As such, year over year, the appraisal value of our portfolio has also grown at rates above inflation (16% in 2017 and 7% in 2016).
The sale of Urban Center Condesa launches the corporate strategy to recycle assets that have achieved maximum potential value with a stabilization of 100% and a relevant compression CAP rate. All proceeds from the transaction will be invested in projects to generate greater returns and improve the company’s balance sheet.