Weekly Review I April 10, 2024

GENERAL SITUATION IN MEXICO

RELEVANT NEWS

FINSA RAISES $600 MILLION FROM INVESTORS AND AFORES TO BUILD INDUSTRIAL PARKS

Finsa raises $600 million from investors and Afores to build industrial parks

Industrial real estate developer Finsa has raised $600 million from Mexican investors and some Afores to build industrial parks to meet nearshoring demand in Monterrey, Saltillo, Ciudad Juarez, El Bajio, Jalisco and Tijuana-Mexicali.

“The dynamism and growing interest in the industrial sector, as well as the prospects we have for the next 10 years, allow us to develop and propose increasingly large, comprehensive and diversified investments,” said Sergio Argüelles, President and CEO of the company.

The capital raised was made through Fund V, which

has a projected 10-year life cycle with a 4-year investment period. The main objective of this fund is to consolidate a portfolio of Class A and sustainable industrial buildings in Monterrey, Saltillo, Juarez, Tijuana-Mexicali, El Bajio, Jalisco and Downtown.

Investors include Mexican institutions that recognize the “successful track record of Finsa’s previous funds,” including some Afores, the company said.

“These investments will accompany and strengthen our industrial projects under development,” said Sergio Argüelles.

He stated that the injection of capital from Mexican investors and Afores demonstrates the strength of

RELEVANT NEWS

the company’s growth and diversification strategy, which has resulted in the construction of more than 12 million square meters of industrial parks, representing 13.6% of the country’s industrial real estate inventory and generating approximately 300,000 jobs.

He added that the company currently has 23 industrial parks, 3.7 million square meters under management and leasing, with an occupancy rate of 99%, serving industries such as manufacturing, automotive, aerospace, logistics, and e-commerce.

He highlighted that the company has been a pioneer in the development of a green portfolio and sustainable buildings, representing 17% of the national total of LEED certified industrial buildings in Mexico.

The company said that on December 29, 2023, it closed the first stage of the Finsa V Investment Fund for $340 million with a maturity of 10 years, and estimates that the closing of subsequent stages to complete this fund will be completed in the coming months.

He pointed out that this initiative is committed to the growth of the industrial market, driven by nearshoring, and reflects a growing interest in the sector.Finsa raises $600 million from investors and Afores to build industrial parks

SOURCE: FORBES MEXICO

KEYPOINTS OF PRESIDENT ANDRES

MANUEL LOPEZ OBRADOR’S MORNING PRESS

April 3-9, 2024

CONFERENCE

HEALTH ISSUES

• Medicine Shortage: President Andrés Manuel López Obrador accused his opponents and the media of opposing his Megapharmacy proposal due to alleged corruption in medicine procurement contracts. He announced plans to discuss progress on federalizing health services with governors and to address corruption issues in the ISSSTE and medicine contracts in the State of Mexico. He reaffirmed his commitment to improving Mexico’s public health system through infrastructure investment, better equipment, increased personnel, and medicine supply.

• Public Healthcare System: President López Obrador announced plans to establish a top-tier public health system in Mexico by the end of September, with support from 23 federative entities. This initiative involves creating medical teams, implementing health centers, and hiring specialists. The aim is to provide healthcare to underserved populations. He criticized past administrations for favoritism and corruption in the pharmaceutical sector, stating that medication supply is now at full capacity. Periodic reports on the health system’s status will be provided, and the right to health is assured with adequate budget allocation.

KEYPOINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S MORNING PRESS CONFERENCE

ECONOMIC AND TRADE

• Reduction in PEMEX Crude Oil Exports: President López Obrador outlined his government’s policy of reducing crude oil exports to prioritize refining in Mexico, aiming to boost the national industry and job creation. He noted that despite export cuts, production levels in Mexico have been maintained. Additionally, he announced the upcoming start of diesel production at the Dos Bocas refinery, expected to reach full capacity by May or June. The President also mentioned that his administration has honored concessions granted to the private sector, despite the limited increase in production capacity. Finally, he highlighted that Mexico’s energy transition will span approximately 30 to 40 years.

LEGAL

• Lawsuit Against Mexicana de Aviación: President López Obrador announced that the airline Mexicana de Aviación is facing a lawsuit from the company Sat Aero Holdings, emphasizing that the legal action is due to Mexicana de Aviación canceling a contract with that company due to breaches of leasing contracts, security deposits, and related rental concepts for 10 aircraft. The president added that they will attend the trial and present all evidence that the foreign company failed to comply with the agreements.

INTERNATIONAL RELATIONS

• Mexico-Ecuador Situation: President López Obrador expressed gratitude to foreign leaders for their response to the events at the Mexican Embassy in Ecuador, condemning the violation of Mexico’s

sovereignty and asylum rights. The Minister of Foreign Relations, Alicia Barcena, reiterated Mexico’s adherence to international law and announced the decision to sever diplomatic relations with Ecuador due to the embassy raid. Mexico plans to file a lawsuit with the International Court of Justice and seek support from CELAC countries and international bodies. Several Latin American countries have called for meetings to address the situation. Mexican embassies in neighboring countries are assisting Mexican nationals in Ecuador, and Mexico will not take retaliatory measures against the Ecuadorian embassy in Mexico.

• Migration: President López Obrador emphasized the need to address the root causes of the migration crisis. He called for the regularization of Mexicans living in the United States and urged against repression of his fellow countrymen. Additionally, he criticized the actions of Texas Governor Greg Abbott in this regard.

SONORA

The maquiladora sector in our state is one of the most united and one of those that generates the greatest economic and commercial impact, that is why we seek to carry out activities that unite this industry that generates a great economic benefit.

Jesús Gamez, president of the National Council of the Maquiladora and Manufacturing Industry in Sonora, carries out social and sports activities that not only provide a direct benefit to the children of workers in the industry, but also strengthen commercial ties.

SOURCE: RADIO INDUSTRY

BAJA CALIFORNIA

Mexicali EDC announces the commencement of the Asia Business Agenda 2024, aiming to showcase their city in the vibrant Asian region and catalyze collaboration between Asia and Baja California.

Yesterday’s discussions proved fruitful as alliances were forged and strategies devised to enhance business prospects in the region.

SOURCE: MEXICALI EDC

NUEVO LEON

During February 2024, manufacturing in the state continued to accelerate, according to the Nuevo Leon Chamber of the Transformation Industry (Caintra).

In greater detail, the physical volume of production increased with respect to the previous month and reached 53.1 points. Meanwhile, the inventories index grew by 2 points and positioned itself above the expansion threshold at 53.8 points, achieving 14 consecutive months of expansion.

SOURCE MEXICO INDUSTRY

CHIHUAHUA

The governor of Chihuahua, María Eugenia Campos Galvan, led the start-up ceremony of the Regal Rexnord plant in the state capital, a company that is making an investment of 13.8 million dollars and will generate 190 jobs in the first phase.

Regal Rexnord is a leader in industrial propulsion systems solutions, electric motors, bearings, gears, conveyors and transmission components products and is currently based in downtown Milwaukee, Wisconsin.

SOURCE: EL ECONOMISTA

JALISCO

The Jalisco Business Center (Coparmex) presented 50 proposals that are part of its Agenda for competitiveness and inclusive development that are expected to be taken into account by candidates for elected office. These proposals seek to strengthen actions to generate value in the economic and social life of the state.

This agenda aims to provide information inputs so that candidates can add to their government platforms and implement them through coordinated work with the business sector, academia and civil society.

SOURCE: JALISCO TV

QUERETARO

The Confederación Patronal de la República Mexicana (COPARMEX) Querétaro; the Association for Sustainable Industrial Development Germany-Pacific Alliance (PAGSID) and the Confederation of German Industry (BDI) signed an agreement for the training program for international cooperation in Sustainable Development.

The objective of this program is to train medium, small and micro enterprises (MSMEs) from Germany in line with the 2030 Agenda for Sustainable Development.

SOURCE: AL DIALOGO

AGUASCALIENTES

The governor of Aguascalientes, Tere Jiménez, made a productive working tour of Japan and China to present the state’s logistical, economic and social characteristics to businessmen from various productive sectors, who expressed their interest in making new investments and expansion projects in the state.

As part of her activities in Japan, Tere Jimenez also met with executives from the Japan Bank for International Cooperation and Sumitomo Mitsui Banking Corporation, with whom she seeks to explore financing and development opportunities for companies, in view of the transition from combustion to electric vehicles.

SOURCE: REPORTE INDIGO

SAN LUIS POTOSI

The National Institute of Statistics and Geography’s (INEGI) “Mexico, How Are We Doing?” platform highlighted San Luis Potosi as the best economy in the Bajio region, according to its latest report.

In this sense, the Potosi economy grew by 10.6%, as of the third quarter (3Q) of 2023, surpassing the 4.5% annual target. This is its best score in three years:

2023: 10.6%

2022: 6.8%

2021: -5.4%

SOURCE: LIDER EMPRESARIAL

GUANAJUATO

The governor of Guanajuato, Diego Sinhue Rodríguez Vallejo, and the mayor of León, Jorge Jiménez Lona, visited the Casa del Emprendedor HUB-I and the Womentefactura meeting.

Both projects promote project innovation and artificial intelligence for the economy of the future.

Municipal President Jorge Jiménez Lona accompanied Governor Diego Sinhue Rodríguez to learn about the stories of effort that emerge at the Casa del Emprendedor Hub-I and later to meet with women at the Womentefactura meeting.

The Casa del Emprendedor Hub-I supports innovative projects that promote mentefactura.

SOURCE: LIDER EMPRESARIAL

CDMX

During the first quarter of 2024, Mexico City experienced a significant increase in industrial demand, accumulating 530 thousand square meters, more than double compared to March 2023. The city now ranks as the second in industrial demand nationwide, driven by areas like Toluca and the CTT corridors, along with the Zumpango corridor. The rise in demand is mainly due to logistics companies entering the market. Rental prices have consequently increased, reaching an average of USD 7.92 per square meter by the end of the first quarter. Additionally, Mexico City maintains its position as the most competitive entity in Mexico for 21 consecutive years according to the state competitiveness index, with expectations to continue this trend throughout 2024.

SOURCE: REAL ESTATEMISTA

STATE OF MEXICO

In the State of Mexico, the sale of hybrid and electric vehicles surged at the beginning of this year, according to data from the National Institute of Statistics and Geography (INEGI). In January 2024, 928 units were sold, compared to 557 units in January 2023, marking an increase of 371 units. In January, Mexico City led in the sale of light vehicles with 1,923 units, followed by the State of Mexico with 928 units. Nuevo León and Jalisco ranked third and fourth with 703 and 644 units sold, respectively.

SOURCE: EL SOL DE MÉXICO

NATIONAL RAPPI

The e-commerce company announces an investment of 110 million dollars over the course of 2024 to expand its presence in the Mexican market.[

NORTH SEOJIN MOBILITY

The automotive company announces an investment of 260 million dollars for an electric motor plant in Escobedo, Nuevo León. The project is expected to create 300 jobs.

WNC

The Taiwanese electronics company opened a new plant in Ciudad Juarez, Chihuahua. The company invested 40 millions dollars in the project. The jobs details remain unconfirmed.

ZF GROUP

The manufacturing company opened a new facility in Guadalupe, Nuevo León with an investment of 200 millions dollars. The project aims to create 300 jobs.

SOURCES: MEXICO INDUSTRY, MEXICO NOW, CLUSTER INDUSTRIAL

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