Deka buys office property in Mexico City (MX/DE)

Deka Immobilien Investment GmbH is extending their international commitment by a first investment in Latin America. By purchasing the class A office property Torre de los Parques, they acquire a superior quality and architecturally striking property in an excellent position in the center of Mexico City.

The purchase price amounts to about $21 million (c. €14.5m). The vendor is the Mexican project developer Grupo Clonaim. The property was acquired for the worldwide public fund of Deka-ImmobilienGlobal and is bound to contribute to increasing the funds performance. The transaction was arranged by Deka Immobilien GmbH who control the worldwide purchase and sale of property of the Deka Bank Group.

The building was completed in 2002 and is located about six kilometers south-west of the historic center of Mexico City, in Insurgentes. The area of approximately 6,500 m² net has been almost fully let, whereby the office lease contracts were concluded on a US Dollar basis.

Mexico is Latin Americas second largest economy after Brazil. Last years economic growth amounted to 4.8%. The metropolis of Mexico City, with 22 million inhabitants, is one of the worlds most dynamically growing regions. Mexico City is an important financial and trade center. More than half the country's industrial production is accounted for by the capital and its immediate surroundings.

The Mexican economy and the property market have benefited particularly from the North American Free Trade Agreement (NAFTA) concluded in 1994 with the USA and Canada and which resulted in a rise in exports. The office property market of Mexico City is developing extremely dynamically. The continuing large demand has resulted in fewer vacant properties and in a peak rent increase. First class development land only reaches the market to a moderate extent.

Source: Deka Immobilien

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