Hamburg-based DIFA Deutsche Immobilien Fonds AG is continuing to gain ground in Latin America. Following on from its exciting purchase of the landmark "Torre Mayor" building in Mexico City, DIFA has now acquired the premium "Tamayo 100" office block in Monterrey. This second deal in Mexico for the open-ended DIFA-Global real estate fund (ISIN: DE0009805556) represents an investment volume of approximately 22 million.
Tamayo 100 is a new build offering some 8,100 m² of space. Twelve months after completion it is 68% let long-term to blue chip tenants that include PriceWaterhouseCooper and American Airlines. The investment is also protected by indexed leases on US dollar basis and through rent guarantees over five years. Hines has been tasked with managing the property, with the company maintaining an extensive management team in Mexico.
By virtue of its state-of-the-art technical facilities and central location on the Valle Oriente (in Monterrey's CBD), Tamayo 100 features at the top end of an office market that comprises some 900,000 m² of space. A base for numerous industrial conglomerates, Monterrey is Mexico's most affluent city. Home to 3.5 million inhabitants, it is situated in the north of the country just two hours by car from the US border.
"As a dynamic industrial location with GDP growth of around 4% which benefits greatly from its geographic proximity to the US, the Monterrey area offers good conditions for selective acquisitions," says Michael Montebaur, head of international asset management at DIFA. The investment demonstrates DIFA's strategy of teaming with local partners to build small to medium-sized portfolios in emerging markets with strong prospects. "As an addition to a globally diversified fund, an emerging market like Mexico - the world's fourth biggest producer of crude oil - opens up real opportunities," states Montebaur as part of announcing further strategic expansion of DIFA's exposure to Latin America.