World News: 00:39 GMT Friday 12th October 2018. [Fibra Inn via Globe Newswire via SPi World News]
MONTERREY, Mexico, Oct. 11, 2018 (GLOBE NEWSWIRE) -- Deutsche Bank Mexico, S.A., Banking institution, Trust Division F/1616 or Fibra Inn (BMV: FINN13, ADR OTC: DFBRY) (“Fibra Inn” or “the Company”), a Mexican real estate investment trust internally managed specialized in the hotel industry serving the traveler with global brands, announced that it purchased a land property in Playa del Carmen, via a modality co-investment with a New York-based fund.
The total investment for the purchase of this land was US$ 17.0 million, which included: (i) transaction closing costs, as well as (ii) the municipality’s construction permits and licenses, which Fibra Inn initiated upon the signing of the purchase option. Fibra Inn participated with 29.4% of the total investment.
The lot is 5,475 m in size and is located steps from the beach; it is the only beachfront property available at this time in the Playa del Carmen urban area. Its value-added proposition stems from the fact that it is a commercial mixed-use property, which is compatible with lodging activity in accordance with the urban development program in Playa del Carmen. The construction licenses were obtained basically at the same time as the purchase took place. Fibra Inn expects to initiate the construction within the next 12 months and for an expected project size in the range of 250 to 270 rooms, with an average daily rate that could surpass US$ 300.
The modality refers to the participation of partners for the purchase of the land properties, which allows Fibra Inn to take advantage of opportunities located in strategic areas with the flexibility of sharing the investment as a minority holder and thus build a pipeline for the Hotel Factory. Once it enters the Hotel Factory, the investment will be conducted with another development partner for the construction of the hotel.
In this instance, the partner for the Playa del Carmen landbank has the option of maintaining their investment until a year after the developing partner has been incorporated for the construction of the project; during this period, this landbank partner’s participation could convert into mezzanine debt.
The business rationale for the acquisition of this property includes:
“” stated Oscar Calvillo, Chief Executive Officer of Fibra Inn.
In terms of the JW Marriott Arboleda, Fibra Inn formalized the purchase of the footprint of this property last week and has begun the construction of the hotel; it is important to mention that the hotel will be constructed over 4 parking levels and 2 levels of commercial stores. This project is expected to open at the end of 2020.
The Westin Monterrey is on track and this turn-key project is expected to be delivered by the developer during the second quarter of 2019.
With regards to the Marriott Airport Hotel, the Company is working on the final process of the construction project to obtain final authorization of the architectural plans from the brand, in order to comply with the international standards in design, engineering and specifications of the hotel. Construction will begin January 2019 and operations are expected to begin in mid-2020.
Lastly, and with regards to the Secrets Silversands Rivera Cancun Hotel, Fibra Inn remains interested in acquiring this property; however, the purchase option has been extended to allow the seller to resolve pending legal issues. Once these are resolved, Fibra Inn will be in a position to continue with the purchase process.
A photo accompanying this announcement is available at
Globe Newswire: 00:39 GMT Friday 12th October 2018
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