AMB Property Corp. (AMB), a leading real estate investment trust (REIT), recently announced plans to offer a new commercial real estate fund in Mexico that aims to attract investment from private pension administrators, locally known as Afores. AMB had sought the permission of the Mexican stock exchange to list a fund and invite the nation’s 14 private pensions to place part of their $85 billion in combined assets.
The pension funds of Mexico have been recently deregulated to allow the Afores to invest broadly in private equity. Besides providing a capital injection to roads, ports and other big infrastructure projects, the deregulation also enables Afores to be more flexible to better manage stock and debt holdings during times of high volatility.
AMB is a leading industrial real estate company, with a strong portfolio of warehouses and distribution facilities in some of the busiest distribution markets in the world. The company’s properties are located in supply-constrained infill markets at close proximity to airports, seaports and ground transportation facilities, which enable the swift distribution of customers’ products.
AMB has two lines of businesses: real estate operations, which involve the long-term ownership and operations of industrial properties; and private capital, which provide portfolio management and reporting services to joint venture partners. The company earns acquisition, development and asset management fees in addition to priority distributions and promoted interest from the private capital business.
Read the full analyst report on “AMB”
Zacks Investment Research
