By Víctor Martínez, Actinver Brokerage House
As you probably know REIT investments are new in the Mexican stock market. Actinver is proud to present a new way to participate in the real estate market through its new fund: ACTINMO.
First, let’s remember what exactly REITs are: a Real Estate Investment Trust is an investment vehicle through which a small or individual investor can invest in large scale real estate assetssuch as corporate buildings and industrial or commercial properties. These properties generate rent without having to commit large amounts of capital into a single asset.
The REIT´s objective is to reflect through its price and dividends the increasing value of its properties and the rents earned by them. The advantages of investing in a REIT against holding a single property are basically 2: liquidity and property diversification.
In Mexico at least 70% of the REIT’s assets must be invested in real estate designated to leasing. Given the case a REIT decides to undertake the construction of a project, Mexican law requires them to lease it without exception. Properties cannot be sold in less than 4 years of their acquisition or construction. At least 95% of its net gain must be paid as dividends to the shareholders.
Currently Mexico has great economic and political stability, with GDP growth close to 4% and inflation close to 3.8 % we are counted among the most stable economies in the world. That is why we currently are a very attractive investment opportunity for foreign investors, especially for US investors. With the interest rate close to 0% in the US and all the political issues in Washington, many investors try to find a safe haven country with a decent interest rate and not so wild political environment to invest.
There are only 5 REITs listed at the Mexican stock exchange (Fibra Uno, Fibra Macquarie, Fibra Inn, Terra and Fibra Hotel). Our fund gives you access to all 5 REITs simplifying costs, active administration, timing and asset allocation for you. It is important for us that our clients get the best of the Mexican REIT market through our experience and knowledge.
For further information please contact our Puerto Vallarta representative:
Mauricio Gonzalez Carpizo
Timothy Real Estate Group – An innovative company setting new standards in property sales and services has combined the most thoroughly professional and experienced talents to keep clients informed about the intricacies of Mexican real estate ownership, local real estate markets, local codes and regulations, financing, rentals and perhaps most importantly, sound analysis for every aspect of real property ownership. With combined real property services experience of more than 35 year’s worth of real estate sales, accounting, management, and property services, Timothy Real Estate Group is unequaled in its professionalism and experience with foreign investors. Ask about our Real Estate Listings