Fibra Next debuts on the Mexican Stock Exchange

After more than seven years of drought on the Mexican Stock Exchange, Fibra Next, a spin-off of Fibra UNO's industrial assets, is launching this Wednesday.

According to the real estate investment trust's (FIBRA) placement prospectus, the company sought to enter the market in 2023, a promising period for nearshoring, but final approval was not received until February of this year.

On that occasion, the industrial assets of Fibra UNO, which owns industrial, commercial, and office properties, would be separated.

The project was intended to attract national and foreign investors, with potential to reach 20 million square meters in the future, valued at over $1 billion.

Today, the initial public offering (IPO) will seek to raise $400 million and offer 6 million square meters of industrial assets.

Investors from Boston, New York, and London, among others, were visited. In Mexico, institutional investors and Retirement Fund Administrators (Afores) were also present.

According to available information, FUNO executives visited more than 32 international investors who had expressed interest in the issue two years ago.

It is expected that 100% of these institutional investors will participate in the placement of the stock certificates, although there were opinions from experts that it would be better to wait for the geopolitical, economic, and international waters to calm down, and it was even recommended to exit by the first quarter of 2026.

According to a source close to the transaction, the divided opinions abroad were different in Mexico, where institutional investors and pension fund managers were more than willing to purchase Fibra Next certificates.

9 properties placed

According to Next's prospectus, 18 properties and those of Fibra UNO will be offered in 2023. Currently, there will be nine properties with 754,154 square meters, and in the near future, another nine properties will be added, bringing the total to the original 2023 offering.

"Now they will seek $400 million, and with a window into the international market, the company could go for another $600 or $700 million," said one analyst, referring to the company's short-term investment.

Given the new offer of an investment vehicle in the current national and international economic conditions, it is expected that regardless of the outcome of the US tariff issue, Mexico will be the country that benefits most or is least harmed by the tariffs.

Nearshoring is turned off

Although the nearshoring hype has subsided, Fibra UNO has only 25% of its assets in the northern states of Mexico. According to its reports to the Mexican Stock Exchange (BMV), 75% of its industrial assets are concentrated in the center of the country and are dedicated to warehousing and logistics.

Investors acknowledge that nearshoring won't be the same as it was in 2023, but it will continue to exist, just not with the same momentum in the remaining three years of the current U.S. presidential administration.

In its first-quarter report to the Mexican Stock Exchange (BMV), Fibra UNO reported that its industrial warehouses were over 95% occupied. It also highlighted that no plant had been vacated and that contracts were being renewed.

Fibra UNO's stock certificates have risen 28% on the stock market so far this year.

Fibra executives have commented that the market is recognizing the value of the assets in terms of stock market capitalization.

Various analysts project a target price for Funo's certificate of appreciation of between 30 and 45% in one year. Fibra UNO executives say that Fibra UNO is trading at a 50% discount to its real value.

Fibra Next will have a separate listing from Fibra UNO on the Mexican Stock Exchange. According to reports, it will have its own management team, including CEO Raúl Gallegos, chief financial officer, and general counsel.

In the short term, it will use Fibra UNO's back office, and as the company grows, it will become less dependent on its parent company.

The real estate assets in the initial portfolio are located in five states, including Mexico City, the State of Mexico, Jalisco, Querétaro, and Quintana Roo, according to the placement prospectus sent to investors.