Corporate Finance

Galicia Assists on $14m IPO

© Paul Brennan


Galicia Abogados served as counsel to U-Storage as issuer and Banorte as underwriter in relation with a $14m initial public offering of a Mexican real estate investment trust. The transaction also involved a portfolio valuation of $180m. The deal was completed on July 17th.

 

This real estate investment trust (REIT) is the first one in Mexico to specialize in self-storage spaces and it currently has 14 properties; two acquired, five in process of being acquired, two under construction and the remaining five are land reserves. Combined, the properties, located in Mexico City and its surround, have 97,515 m2 of leasable land, with 9,643 storage units.

 

One hundred million CBFIs will be held in REIT treasury and, to be used for acquiring other properties. The offering price of the CBFIs was $15.40 Mexican pesos per CBFI.

 

U-Storage was founded in 2002 and it is one of the pioneers of the self-storage business in Mexico. The REIT will own, operate and lease properties with lockers, mini-storage units and warehouses.

 

This is the smallest initial public offering in Mexican capital markets in 15 years, which reflects the availability of the Mexican capital markets for medium and small-size companies. 

 

The Galicia team served as legal counsel in the supervision and negotiation of the transactions documents, led by partner Maurice Berkman, assisted by associates José Alejandro Cortés, Jorge Mendizábal, Diego Velasco and Sofía Montes de Oca.

 

C.G.L.

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