Mexican agricultural real estate firm hopes to raise $266 mln

Mexico's AgroFibra will launch a firm focused on real estate investments in agriculture, the company's top executive said on Tuesday, aiming to take advantage of high demand for fresh produce in the United States.

AgroFibra will hold its initial public offering on the Bolsa Institucional de Valores (Biva) on Friday, and expects to raise 5.25 billion pesos ($266 million).

AgroFibra, an agricultural equivalent to real estate investment trusts in the United States, aims to acquire, sell, lease back and build properties. Its wide-ranging focus extends from developing farming facilities to handling their logistics, Chief Executive Jorge Guajardo told Reuters.

Guajardo said all of the firm's current tenants export farm goods, generating U.S. dollars from assets like greenhouses.

AgroFibra will initially pay quarterly dividends, but plans to eventually distribute monthly payments, said Guajardo.

AgroFibra's IPO comes as some international firms focused on selling to U.S. buyers see opportunities setting up shop in neighboring Mexico.

Credit Suisse, Finamex, Citibanamex, BTG Pactual, Actinver and Fimecap will manage the IPO, AgroFibra said.

Agriculture represents nearly 9% of Mexico's economy, according to the company, while exports on the farming sector grew to $19.9 billion in 2021, up from $14.84 billion in 2016, government data shows.

While some analysts say that AgroFibra could overcome adverse economic factors like rising inflation, Guajardo expressed caution.

"Current inflation is a challenge," he said, adding he nonetheless remains confident in the short term.

Monex analyst Jose Roberto Solano believes economic recovery in Mexico should help real estate investment boost dividend payments, including for AgroFibra.

"The recovery environment of the industrial, commercial and office sectors, 'nearshoring' and the ability to raise capital would make the (real estate) sector continue to be attractive," he said.

($1 = 19.7342 Mexican pesos)