AMERICAS - Prologis has transferred $293m (€225.4m) in logistics real estate assets to one of its co-investment venture backed by Mexican pension funds in a bid to reduce the company's debt.
Prologis Mexico Fondo Logistico, formed in 2010 by AMB Property Corporation prior to its merger with Prologis, will receive $243m of real estate assets from Prologis' wholly-owned portfolio and $58.5m from another fund, the Prologis North American Industrial Fund II.
The combined portfolio comprises 22 properties, covering some 5.3m sq ft, located in Monterrey, Guadalajara and Mexico City.
Prologis chief financial officer William Sullivan said the capital would be used to "grow private capital business" and "strengthen business by reducing debt."
He added: "With this contribution and with additional contributions and dispositions that are currently underway, we are making significant progress in achieving both strategic objectives."
Prologis Latin America president Luis Gutierrez said it represented the largest industrial real estate transaction based on Mexican pension capital.
Prologis Mexico Fondo Logistico was formed through a public offering in June 2010, attracting $260m from Mexican institutional investors, predominantly private pension plans known as AFORES.
Mexico's strong economic growth, vibrant consumer demand, young demographics and strong demand for "state-of-the-art chain infrastructure" make it an attractive investment destination, he said.
"This is a terrific opportunity for our investors to deploy capital and acquire high-quality assets in global markets," Gutierrez said.