Logistic Properties of the Americas Enters Mexican Market Through Strategic Partnership with Falcon

Rhea-AI Summary

Logistic Properties of the Americas (NYSE American: LPA) has announced a strategic partnership with Falcon, a leading Mexican real estate developer. This partnership marks LPA's entry into the Mexican market and includes the addition of two operating properties with a combined gross lease area of 257,677 square feet, anchored by DHL as a tenant. The deal, expected to close in early 2025, grants LPA access to Falcon's extensive experience and network in Mexico's industrial and logistics market. This move aims to enhance LPA's regional presence and develop top-tier logistics solutions for new clients in Mexico, supporting the company's expansion strategy in Latin America. CEO Esteban Saldarriaga highlighted the alliance's potential to deliver long-term value to investors and provide best-in-class logistics solutions. Falcon's Co-CEO Francisco Alvarez Rojo emphasized the combined strengths in developing and operating world-class industrial and logistics real estate. This partnership reinforces LPA's commitment to regional economic growth and sustainability initiatives.

Positive

• LPA's entry into the Mexican market through a partnership with a leading local developer.
• Addition of two operating properties with a combined gross lease area of 257,677 square feet.
• DHL as an anchor tenant in the new properties.
• Access to Falcon’s extensive experience and network in Mexico’s industrial and logistics market.
• Expected transaction closure in early 2025.
• Support for LPA’s regional expansion strategy and development of top-tier logistics solutions.

Negative

• None.

Insights

Financial Analyst

This strategic partnership represents a significant market expansion for LPA, adding 257,677 square feet of gross lease area to their portfolio through two DHL-anchored properties. The Mexico entry is particularly well-timed given the country's increasing importance in nearshoring trends and supply chain reorganization. Having a blue-chip tenant like DHL provides immediate credibility and stable cash flow in this new market.

The partnership with Falcon, leveraging their 65-year operational history and established network, significantly reduces market entry risks and accelerates LPA's ability to scale in Mexico. While specific financial terms aren't disclosed, the deal structure through a partnership approach suggests efficient capital deployment. The expected closing in early 2025 provides adequate time for regulatory approvals and integration planning.

The expansion aligns with broader industry trends as industrial REITs seek growth opportunities in emerging markets, particularly those benefiting from supply chain reorganization and manufacturing shifts from Asia to North America.

Market Research Analyst

Mexico's industrial real estate market is experiencing robust growth driven by nearshoring trends, with manufacturers relocating operations closer to the U.S. market. The timing of LPA's market entry is strategic, as Mexico has become a prime beneficiary of supply chain diversification away from Asia.

The partnership model with Falcon provides LPA with immediate market access while mitigating operational risks through local expertise. The focus on EDGE-certified facilities positions the company well in a market increasingly demanding sustainable industrial spaces. The DHL tenancy in the initial properties provides strong validation of the assets' quality and location.

SAN JOSE, Costa Rica--(BUSINESS WIRE)-- Logistic Properties of the Americas (NYSE American: LPA) (together with its subsidiaries, “LPA” or the “Company”), announced today that it had entered into a strategic partnership with Inmobiliaria y Constructora Alas, S.A. de C.V. (“Falcon”), a leading real estate developer in Mexico, marking LPA’s entry into the Mexican market. The partnership with Falcon enables LPA to establish a strong foothold in Mexico’s rapidly growing manufacturing industry by adding two operating properties with a combined gross lease area of 257,677 square feet, anchored by DHL as a tenant, to LPA’s portfolio.

Furthermore, this strategic alliance will expand the Company’s regional presence by granting LPA immediate access to Falcon’s extensive experience in Mexico’s industrial and logistics market gained through more than 65 years of operation, firmly established relationships with Mexico’s key landowners, and a solid local network of clients and developers.

This transaction, which is expected to close in early 2025, grants LPA an initial operational scale and a solid foundation to develop top-tier logistics solutions for new clients in Mexico. The partnership with Falcon underscores LPA's commitment to a value enhancing expansion strategy in Latin America and further diversifies the Company’s regional vertically integrated real estate platform.

"We are thrilled to partner with Falcon to enter the dynamic and rapidly growing Mexican market, which is increasingly crucial to the global supply chain,” said Esteban Saldarriaga, CEO of LPA. “This alliance is a pivotal step in our expansion strategy and demonstrates LPA’s ability to effectively collaborate with strong local partners to develop Class A assets and bolt on existing asset portfolios in Mexico. With Falcon’s local market insight and extensive design-to-build expertise, we are enhancing our ability to deliver significant long-term value to our investors and bring best-in-class logistics solutions to some of the world’s leading companies operating in Mexico.”

Francisco Alvarez Rojo, Co-CEO of Falcon, added, "We are excited to join forces with LPA to bring their unique regional perspective and expertise to Mexico, to develop and operate world-class industrial and logistics real estate. This partnership leverages our combined strengths to ensure LPA’s successful entry into Mexico’s vibrant and rapidly expanding market. We look forward to supporting LPA’s growth, and to providing premium facilities that meet the evolving needs of top-tier customers in Mexico.”

This strategic partnership reinforces LPA’s position as a regional leader in the industrial and logistics real estate sector, supporting the Company’s commitment to delivering high-performance, EDGE-certified facilities that promote both regional economic growth and sustainability initiatives.

About Logistic Properties of the Americas (NYSE American: LPA)

Logistic Properties of the Americas is a leading developer, owner, and manager of institutional quality, Class A industrial and logistics real estate in high-growth and high-barrier-to-entry markets in the Americas. LPA’s customers are multinational and regional e-commerce retailers, third-party logistic operators, business-to-business distributors, and retail distribution companies. LPA expects its strong customer relationships and insight to enable future growth through the development and acquisition of high-quality, strategically located facilities in its target markets. As of June 30, 2024, LPA consisted of an operating and development portfolio of thirty-one logistic facilities in Colombia, Peru and Costa Rica totaling more than 491,000 square meters (or approximately 5.3 million square feet) of gross leasable area. For more information visit https://ir.lpamericas.com

About Falcon

Falcon is a leading design-build company in Mexico with over 65 years of experience, supporting numerous international clients and many national groups in expanding their operations across the country. With a strong presence in central and southern Mexico, Falcon leverages a skilled team of professionals, along with its steel manufacturing plants and precast concrete facilities, to deliver turnkey projects that meet rigorous international quality and design standards.

Falcon has a proven track record of delivering best-in-class projects for companies that continue to place their trust in its experienced team. By offering innovative, client-focused solutions, Falcon has successfully capitalized on build-to-suit and speculative opportunities in under-supplied markets. Driven by a development strategy focused on meeting growing consumer demand, Falcon consistently addresses unique client needs while contributing to regional economic growth. For more information visit https://falconcm.com.mx/

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107882225/en/

Investor Relations:

Camilo Ulloa

Logistic Properties of the Americas

+506 2204 7020

ir@lpamericas.com

Barbara Cano

InspIR Group

+1 646 452 2334

barbara@inspirgroup.com

Source: Logistic Properties of the Americas

FAQ

What is the significance of LPA's partnership with Falcon?

The partnership marks LPA's entry into the Mexican market, adding two operating properties with a combined gross lease area of 257,677 square feet, anchored by DHL as a tenant.

When is the LPA and Falcon partnership expected to close?

The transaction is expected to close in early 2025.

How does the partnership with Falcon benefit LPA?

The partnership grants LPA access to Falcon’s extensive experience and network in Mexico’s industrial and logistics market, supporting regional expansion and development of top-tier logistics solutions.

What is the role of DHL in LPA's new properties?

DHL is the anchor tenant in the two new properties added to LPA's portfolio.

How does the LPA and Falcon partnership align with LPA's expansion strategy?

The partnership enhances LPA's regional presence in Latin America and supports the development of logistics solutions for new clients in Mexico.