Industrial REIT Posts Mexico’s Largest IPO in 7 Years

Fibra Next just pulled off the country’s biggest IPO since 2018.

The industrial-focused REIT raised 8 billion pesos, or roughly $431 million, through its long-delayed public debut, pricing shares at 100 pesos each, Bloomberg reported. It marks a key moment for Mexico’s stagnant capital markets, which haven’t seen a major real estate listing since a $1.6 billion airport-backed REIT in 2018.

The offering by the offshoot of Mexico’s largest REIT, Fibra Uno, was originally planned for 2023. But the move was shelved multiple times over regulatory and market hurdles, including delays from Mexico’s tax authority and a broader equity market slump. It also overcame a last-minute shake-up in recent weeks after Fibra Uno replaced CIBanco — one of three banks flagged by the U.S. Treasury Department’s FinCEN for alleged money laundering risks — as the offering’s common representative.

Fibra Next’s funds will go toward developing 500,000 square meters — or about 5.38 million square feet — of industrial space, primarily in central Mexico. The trust’s portfolio is weighted heavily toward logistics facilities; 75 percent of its properties are geared toward domestic consumer demand and the rest are clustered along the northern export corridor.

The REIT may return to market for a follow-on offering depending on capital needs, according to Fibra Next CEO Raúl Gallegos, with up to $800 million in additional funding still on the table. The REIT may pursue acquisitions, but Gallegos emphasized the firm will prioritize ground-up development.

Fibra Uno Deputy CEO Gonzalo Robina called the IPO “the signal that many were waiting for” to reenergize public market activity in Mexico, especially after several large companies opted to list abroad in search of higher valuations.

Mexico’s industrial sector has burned red-hot from new nearshoring, strong consumer demand and relative insulation from U.S. tariff threats, but has recalibrated. Industrial development in the country has stalled. National vacancy rates recently climbed from historic lows of around 1 percent to an average of 6 percent, and new leasing has slowed considerably, in large part from restrictive U.S. trade policies and elevated tariffs.

Fibra Next’s debut signals that real estate nevertheless remains a key player in the country’s broader investment rebound. The REIT’s listing may also test investor appetite for future asset spin-offs in the region, particularly if follow-on funding comes through.

— Judah Duke