Terrafina announced the signing of a binding agreement to acquire a $108 million industrial portfolio, excluding transaction and tax costs. This portfolio comprises 17 industrial properties and two land reserves located in the cities of San Luis Potosi, Irapuato, Monterrey, Ciudad Juarez and Reynosa with a 90.5% occupancy rate and will contribute a total of 1.9 million square feet of gross leasable area (GLA) and 4.3 million square feet from the land reserves. Leasing contracts are U.S. dollar-denominated and structured as triple-net leases (NNN).

The stabilized cap rate for this acquisition for the next twelve months is 8.3%. This portfolio is expected to contribute annualized adjusted funds from the operations (AFFO) for $7.0 to $7.5 million. The transaction is expected to conclude during the fourth quarter of 2015 and is subject to routine due diligence as well as authorization from the Mexican Anti-Trust Commission (COFECE).

This transaction will be financed with follow-on resources from the offering that took place on September 2014.