Terrafina’s $276 Million Follow-on Equity Offering


Cleary Gottlieb, Creel, García-Cuéllar, Aiza y Enríquez, Ritch, Mueller, Heather y Nicolau and Simpson Thacher & Bartlett advised on the deal

Terrafina, a Mexican real estate investment trust (fideicomiso de inversión en bienes raices, or FIBRA), finalized a $276 million follow-on equity offering of 159,605,251 Real Estate Trust Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios).

The offering was comprised of a public offering on the Mexican Stock Exchange and a Rule 144A/Reg S offering in the U.S. and outside of Mexico and the United States. Morgan Stanley & Co. LLC, Banco Bilbao Vizcaya Argentaria, S.A., Citigroup Global Markets Inc., Banco BTG Pactual S.A.—Cayman Branch and Evercore Group L.L.C. acted as initial purchasers of the offering. The transaction priced on July 19, 2017, and is expected to close on July 25, 2017.

Terrafina is a FIBRA targeting industrial real estate opportunities in Mexico with a portfolio consisting of 272 real estate properties, including 260 developed industrial facilities and 12 land reserve parcels located across 32 cities in 16 Mexican states. Terrafina is advised by an affiliate of PGIM Real Estate Latin America, the Latin America business of Prudential Real Estate Investors. PGIM Real Estate Latin America is one of the largest real estate investment managers in Latin America and has been investing in the region since 2002.

Cleary Gottlieb advised Terrafina with Jorge Juantorena (Picture), William McRae, Amélie Champsaur, David Toube, Alejandra Melgoza Morales, Juliane Jacques, Catherine Taddei, Elisa Sielski and Rachel Austin Shapiro.

Creel, García-Cuéllar, Aiza y Enríquez advised Terrafina with Mercedes Haddad, Miguel Tellez and Elvira Perez.

In Mexico, Ritch, Mueller, Heather y Nicolau advised Morgan Stanley & Co. LLC, Banco Bilbao Vizcaya Argentaria, S.A., Citigroup Global Markets Inc., Banco BTG Pactual S.A.—Cayman Branch and Evercore Group L.L.C. with Luis A. Nicolau, Oscar A. López Velarde, Leopoldo Fragoso, Raúl Fernández Orendain, Jessica Trejo Solther, Luis Alonso Suárez, Diego Hernández and Luis Tostado.

In US, Simpson Thacher & Bartlett advised the Initial Purchasers.

Involved fees earner: Jorge Juantorena – Cleary Gottlieb Steen & Hamilton; Amélie Champsaur – Cleary Gottlieb Steen & Hamilton; Alejandra Melgoza Morales – Cleary Gottlieb Steen & Hamilton; Juliane Jacques – Cleary Gottlieb Steen & Hamilton;

Law Firms: Cleary Gottlieb Steen & Hamilton;

Clients: Terrafina;