The business rationale employed by Fibra Inn for signing this agreement were the following:
- Airport Corridor: The airport is located in Monterrey's main industrial area as well as one of the most dynamic parts of the city.
- Industrial Parks: Include companies such as FINSA, OMA, Vynmsa, Stiva Aeropuerto, Prologis Park, Milenium Apodaca and NEXXUS.
- KIA Motors Plant: Initiated operations in May 2016 and expects to produce 300 thousand vehicles in the first year, as well as to generate 10 thousand jobs (7 thousand at KIA and 7 thousand at providers) and it is expected to generate up to 40 thousand indirect jobs.
- Ternium Plant: The production of 2 million tons of steel is expected, which will allow for import substitutions and will contribute to national industry competitiveness. This plant represents one of the first sustainable steel complexes in Mexico that will generate over 600 direct and 460 indirect jobs.
- Future Projects: La Silla Industrial Development, Asia Pacific Multiple Complex, Hanon Systems Plant and Ternium Technical School.
- Fibra Inn's investment will be for a maximum of 20% of the project
- Fibra Inn will contribute to the market study, operative planning based on its hotel industry knowledge and financial feasibility study that will contribute to CBFI distributions
- Fibra Inn will ensure the project with the purchase of the land bank as well as the franchise payment; which will give it the right to define the project, select the brand, negotiate the terms with the international chain as conduct franchise negotiations
- Will keep control and leadership of the hotel design and work execution
- Will have control of commercial decisions
- Will have total control of the operating management
The benefits for each of the related parties under this structure, are the following:
|a)||For real estate development investors, this vehicle is an opportunity to build guided projects that meet the construction and design standards of global hotel chains; these investors will have an exit option at the time that Fibra Inn acquires the property.|
|b)||For financial investors, this vehicle is an opportunity to reach reasonable returns, mitigating the risks when selling the asset.|
|c)||For Fibra Inn, this vehicle means having an acquisitions pipeline that will generate direct cash flow with built-to-suit properties that meet global hotel chain standards, in ideal locations where demand has not been satisfied, in which risk and the invested amount are minimized; under this structure, distributions to investors will not be affected.|
For more information, please visit: www.fibrainn.mxNote on Forward-Looking Statements This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. Also, certain reclassifications have been made to make figures comparable for the periods. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.