OREANDA-NEWS. Prudential Real Estate Investors-sponsored Terrafina (BMV: TERRA13), has raised MXP8.3 billion (USD 665 million) in its initial public offering, PREI® announced today. Terrafina is a Mexican real estate investment trust known as a fideicomiso de bienes raнces, or Fibra. PREI is the real estate investment management and advisory business of Prudential Financial, Inc. (NYSE:PRU).

Terrafina offered 295.7 million securities at 28 pesos per share, with the potential to sell an additional up to 44.4 million securities pursuant to a greenshoe option. PREI and Terrafina’s internal management team will manage the Fibra, which holds the third largest industrial portfolio in Mexico. Citigroup, Goldman Sachs & Co. and HSBC served as joint bookrunners for the IPO.

“The dual management structure leverages PREI’s real estate acquisition expertise and asset management capabilities while providing a corporate governance framework that absolutely aligns our interests with those of Terrafina’s shareholders,” said Alfonso Munk, head of PREI-Latin America.

Terrafina’s initial portfolio comprises 146 properties acquired through the combination of two of PREI Latin-America’s closed-end funds, PLA Industrial Fund I and PLA Industrial Fund II. The properties include 132 developed industrial properties and 14 land reserve parcels. The properties are primarily located in Mexico’s central, Bajнo and northern regions, spread throughout 25 cities in 16 states.

“Terrafina’s initial portfolio, with its scale, diversity and geographic reach, gives our investors stability and a substantial market share and positions them to take advantage of Mexico’s ongoing economic expansion,” said Alberto Chretin, CEO of Terrafina. “We are delighted that our investors will continue to benefit from PREI’s expertise, its industry relationships and ability to execute transactions.”

Terrafina’s investors include Mexican institutional and retail investors who acquired securities through the public offering, along with institutional investors around the world who invested through a private placement, and the original investors in the two closed-end funds.

Terrafina’s potential for strong growth outlook is underpinned by the prospects for acquisitions of quality additional properties and organic growth through repositioning properties in the initial portfolio, continuing improvement in occupancy rates, and by the prudent development of its land reserves. “Our conservative, yet flexible capital structure will allow us to pursue appropriate growth opportunities,” added Francisco Navarro, the Fibra’s chief financial officer.

A majority independent board with experienced business leaders from a range of industries governs Terrafina to represent the collective best interests of the shareholders, maximize the value of the Fibra and foster long-term success. Chretin, as the CEO, came to Terrafina after serving as executive advisor to the closed-end industrial funds. He has more than 30 years of international business experience and more than 15 years of experience in running industrial property businesses in Mexico, and was most recently minister of the economy for the State of Chihuahua in Mexico. Munk is the other business-affiliated board member.

Independent board members include: Eduardo Solнs, president of the Mexican Association of the Automotive Industry; Arturo D’Acosta, managing director of Alvarez & Marsal in Mexico City; Edmundo Vallejo, a professor of general management at the IPADE Business School; Josй Luis Barraza, former chair and current member of the board of directors of Grupo Aeromexico; and Victor D. Almeida, general director of Interceramic.

“Our independent board members have deep knowledge and experience in economics, capital markets, international trade, the automotive industry and management, which complement the investment management and real estate knowledge of the Terrafina team and the external advisor,” Chretin said.