Mexico City, July 27, 2021 – 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 successful execution of a new syndicated US$485 million sustainability credit facility comprised of an unsecured revolving credit facility for an amount of US$300 million and an unsecured term loan for an amount of US$185 million, due in July 2026. This new facility will replace the existing revolving credit facility (US$300 million) and term loan (US$179 million), which mature in January 2023 and October 2022, respectively.
This achievement was the result of the coordinated work with PGIM Real Estate to continue improving the cost of financing while strengthening Terrafina’s roster of lenders and its ESG position in the industrial real estate sector.
The new facility is linked to a sustainability KPI (“square feet certified as green building”), which is in line with Terrafina’s recently announced ESG goal of certifying 15% of its portfolio’s GLA by 2030. As an added benefit, the new credit facility enjoys a lower cost of debt (up to 45 basis points lower), as well as the extension in Terrafina’s weighted average debt maturity.
Alberto Chretin, CEO of Terrafina, commented: “We are excited about integrating our sustainability principles into Terrafina’s capital structure, while also improving our debt profile. This will have a positive impact on both the operation and our financial results. As we continue to make progress in implementing and executing our ESG strategy, it is crucial to strengthen our leadership in the industry. By taking this step, we further commit to drive positive change through a sustainable financing structure, which sets the path for future breakthroughs.”
Miranda Newswire – Full Press Release: Download PDF
For more information please visit www.terrafina.mx/en or contact:
Investor Relations Officer
Phone: +52 (55) 5279-8107
Ana María Ybarra
Phone: +52 (55) 3660-4037
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 283 real estate properties, including 274 developed industrial facilities with a collective GLA of approximately 38.9 million square feet and 9 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 an effective management and corporate governance structure. For more information, please visit www.terrafina.mx/en
About PGIM Real Estate
As one of the largest real estate managers in the world with $190.4 billion in gross assets under management and administration1, PGIM Real Estate strives to deliver exceptional outcomes for investors and borrowers through a range of real estate equity and debt solutions across the risk-return spectrum. PGIM Real Estate is a business of PGIM, the $1.7 trillion global asset management business of Prudential Financial, Inc. (NYSE: PRU).
PGIM Real Estate’s rigorous risk management, seamless execution, and extensive industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing2, and the deep local expertise of professionals in 31 cities globally. Through its investment, financing, asset management, and talent management approach, PGIM Real Estate engages in practices that ignite positive environmental and social impact, while pursuing activities that strengthen communities around the world. For more information visit www.pgimrealestate.com.
1As of March 31, 2021. Includes US$43.3 billion in assets under management (AUA).
2Includes legacy lending through PGIM’s parent company, PFI.
About PGIM and Prudential Financial, Inc.
PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world1 with more than $1.7 trillion in assets under management as of March 31, 2021. With offices in 16 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit www.pgim.com.
Prudential’s additional businesses offer a variety of products and services, including life insurance, annuities and retirement-related services. For more information about Prudential, please visit www.news.prudential.com.
Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom.
1Prudential Financial, Inc. (PFI) is the 10th largest investment manager (out of 527 firms surveyed) in terms of global assets under management based on Pensions & Investments’ Top Money Managers list published on June 1, 2020. This ranking represents global assets under management by PFI as of March 31, 2020.
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.