MEXICO CITY/SAO PAULO, Sept 4 Macquarie Group Ltd's Mexican real investment trust could raise most of the $415 million in a stock offering planned for this month from foreign investors, a sign that appetite for property assets in the country is swelling, two sources with direct knowledge of the transaction said.
Foreign investors could buy around 70 percent of Macquarie Mexico Real Estate Management SAB de CV's offer, with domestic investors snapping up the rest, said one of the sources, who requested anonymity since the deal is in the works. Fibra Macquarie, as the company is known, announced terms of the offering earlier on Thursday.
Under those terms, Fibra Macquarie wants to sell as many as 180 million of shares worth $357 million in an offering for resident and non-resident investors in Mexico. Taking into account a supplementary and additional allotments, Fibra Macquarie's offering could fetch as much as $415 million, the second source said.
The follow-on, usually a plan to raise money from the sale of shares after an initial public offering, is expected to be finalized as early as next week, both sources said.
REITs have become a popular financial instrument in Latin America's second-biggest economy because they can provide cheaper funding than the residential and commercial mortgage markets and stable returns to investors. Fibra Macquarie, which went public in 2012 and has a focus on industrial and office compounds, wants to use proceeds from the follow-on offering to cut debt and buy more property.
Fibra Macquarie hired Banco Bilbao Vizcaya Argentaria SA , Bank of America Corp, Morgan Stanley & Co and JPMorgan Chase & Co to manage the local deal. Brazilian investment-banking firms Itaú BBA SA and Grupo BTG Pactual SA will handle the international portion of the deal. (Editing by Bernard Orr)