MEXICO CITY, Sept. 28, 2018 (GLOBE NEWSWIRE) -- Terrafina (”TERRA”) (BMV: TERRA13), a leading Mexican industrial real estate investment trust (“FIBRA”), externally advised by PGIM Real Estate and dedicated to the acquisition, development, lease and management of industrial real estate properties in Mexico, announced today the signing of a binding contract for the construction of a built-to-suit (BTS) industrial property located in Ciudad Juarez.

During the last six months, Terrafina participated in an open bidding process and was awarded the construction of an industrial BTS property for an existing tenant in the automotive sector. The total estimated investment in this property (excluding taxes) is of US$13.8 million. This property is expected to generate a development yield over stabilized net operating income (NOI) of above 12%.

The construction process will take place in two phases. During the first phase, an estimated 100,000 square feet will be developed and delivered in the next six months. The second phase will consist of an expansion of approximately 160,000 square feet with the option for an additional 265,000 square feet. The leasing contract was signed for a ten-year period.

“With this type of development opportunity, we aim to strengthen business relationships with our tenants, thereby prompting growth opportunities in the real estate sector. Together with the expertise and market knowledge of our property managers, we expect to take advantage of more active demand in the industrial space to continue promoting the manufacturing-for-export sector in Mexico.  

I also want to mention that we are initiating the process for LEED certification at this industrial property. In this manner, we seek to guarantee the application of sustainable strategies during the construction process, as well as maximizing sustainability levels during its usage phase,” stated Alberto Chretin, Terrafina’s CEO.

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 PGIM Real Estate.

Terrafina owns 298 real estate properties, including 286 developed industrial facilities with a collective GLA of approximately 40.9 million square feet and 12 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.

PGIM Real Estate
PGIM Real Estate is the real estate investment business of PGIM Inc., the global investment management business of Prudential Financial, Inc. (NYSE: PRU).  Redefining the real estate investing landscape since 1970, PGIM Real Estate has professionals in 18 cities in the Americas, Europe and Asia Pacific with deep local knowledge and expertise, and gross assets under management of US$69.2 billion (US$49.5 billion net) as of June 30, 2018. PGIM Real Estate’s tenured team offers to its global client base a broad range of real estate equity, debt, and securities investment strategies that span the risk/return spectrum. For more information, visit www.pgimrealestate.com.

About Prudential Financial, Inc.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with more than US$1.4 trillion of assets under management as of June 30, 2018, 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.

Contacts in Mexico City:
Francisco Martinez
Investor Relations Officer
Tel: +52 (55) 5279-8107
E-mail: francisco.martinez@terrafina.mx 

Contacts in New York:
Maria Barona
i-advize Corporate Communications, Inc.
Tel: +(212) 406-3691
E-mail: mbarona@i-advize.com