Kimco sells four Mexico centers for $92 million
Kimco Realty Corp. will sell a 1 million-square-foot, four-property shopping center portfolio in Mexico to its local operating partner, Planigrupo, for about $92 million. These wholly owned properties include Plaza Universidad, in Pachuca; La Nogalera, in Saltillo; Gran Plaza, in Cancun; and Plaza Bella Huinala, in Monterrey. Anchor tenants include Home Depot, HEB and Cinépolis, as well as Wal-Mart-affiliated Bodega Aurrera and Suburbia.
This transaction represents Kimco’s second sale to Planigrupo during 2013. In May, the REIT sold a nine-property Mexican shopping center portfolio, comprising 2.6 million square feet, to Planigrupo for $274 million.
In addition, Kimco recently completed two other sales from the Latin America portfolio during the third quarter of 2013. In Mexico, the company sold its 43 percent ownership interest in the Centro Sur shopping center, a 655,000-square-foot center in Guadalajara, Mexico, for $41 million. Kimco also sold its 50 percent ownership interest in a nine-property, 269,000-square-foot shopping center portfolio located in Chile to its local joint venture operating partner for $50.2 million.
Investor interest in Mexican retail properties has been robust, David B. Henry, Kimco’s vice chairman, president and CEO, said on the firm’s first-quarter earnings call. “Existing REITs, prospective REITs and Mexican insurance companies and pension funds are all looking for quality real estate properties,” he said. “The Mexican economy is also performing well, with a GDP growth rate of approximately 4 percent, unemployment at 5 percent and a very strong manufacturing sector.”