Macquarie Panel Deems Prologis Offer Financially Fair as Bidding Intensifies

Overview

• Fibra Macquarie’s Technical Committee said Prologis’s tender to take over its management rights is financially fair for holders of its real estate trust certificates.
• Prologis is offering either 0.525 of its own certificates per Macquarie certificate or 44 pesos in cash per certificate in a deal valued at 10.524 billion pesos, and the offer remains open until May 5.
• Prologis accused Fibra MTY of leaving out key removal and termination fees in its restructuring materials and said MTY lacks a clear plan to internalize Macquarie’s management, while Prologis touted a defined transition and a lower asset-management fee.
• Fibra MTY and Fibra Next have owner backing to prepare rival bids, and first-quarter results for industrial real estate trusts are expected to spotlight occupancy near 96% to 97% and lease renewals over simple size growth.
• A stronger peso could trim reported peso revenue for trusts with dollar rents, such as MTY at about 85% and Prologis at about 77%, while active debt markets—Bladex raised 4.265 billion pesos and Invex plans up to 5 billion—could help fund deals.