Brownstein Hyatt Farber Schreck played the leading role in record-breaking deal
DENVER – JAN. 21, 2014 – Brownstein Hyatt Farber Schreck’s Corporate Group played the lead role in closing Mexico’s largest real estate transaction representing MRP Group, LP, based in Denver, which sold the majority of its portfolio to Fibra Uno for more than US$2 billion. Brownstein’s team, led by shareholder Steve Demby, worked with several companies including Black Creek Group, LLP, also based in Denver, which established MRP Group in 2002. MRP Group, a multibillion-dollar private equity fund run by John Blumberg, through its operating affiliates and under the name Mexico Retail Properties, acquires, develops and owns high-quality, well-anchored shopping centers throughout Mexico. The assets sold were all of those properties owned by Funds I, II and III. MRP Group will continue to develop, own and operate additional properties through its Fund IV.
“We are proud to support MRP Group in this groundbreaking deal,” said Adam Agron, co-managing partner of Brownstein. “This transaction showcases Brownstein’s extensive capabilities and experience handling complex, international transactions.”
The portfolio sold by MRP Group was comprised of 49 commercial properties, which represent a total leasable area of nearly 1 million square meters and will generate to Fibra Uno an estimated net revenue of $1.8 billion pesos per year. Prior to the sale, MRP Group and its affiliates were the largest developer, owner and manager of retail real estate assets in Mexico.
“This was the most complex transaction of my career and one that I’d only entrust to my team at Brownstein Hyatt Farber Schreck,” said Blumberg, MRP Group’s chairman. “Brownstein’s team had the knowledge and experience to navigate this complex, international transaction and I knew we’d get to the finish line because that’s what this team does; they get deals done. I couldn’t be prouder as this transaction marks a milestone in my career and within the private equity industry sector throughout Mexico.”
As part of this transaction, MRP Group and its affiliates will develop and implement for Fibra Uno a proprietary management platform utilizing the latest technology designed and currently used by Mexico Retail Properties. This platform will support and enhance Fibra Uno’s dynamic expansion plan and bolster its ability to identify and capture the future investment opportunities that will arise in the real estate market in Mexico.
Brownstein’s team, led by Demby, included Tom Romer, shareholder; Margaux Trammell, shareholder; Neil Goff, shareholder; Ashley Krause, shareholder; Mark Stockwell, associate; Adam Duerr, associate; Blair Lichtenfels, associate; and Jean Harrison, paralegal.
About Brownstein Hyatt Farber Schreck
Founded in 1968, Brownstein Hyatt Farber Schreck practices in the areas of real estate, natural resources, public policy, corporate and litigation. With more than 250 attorneys and legislative consultants in offices across the western U.S. and in Washington, D.C., and Atlantic City, the firm works in industries ranging from health care, real estate, hospitality, private equity and telecommunications, to technology, construction, energy, banking and finance, water and gaming. For more information about Brownstein Hyatt Farber Schreck, visit www.bhfs.com.
MRP Group, LP, established by Black Creek Group in 2002 and based in Denver, Colo., which conducts business through operating affiliates under the name Mexico Retail Properties, is a fully integrated, industry leader in real estate development in Mexico with experience in every aspect of development, acquisitions, management, finance, leasing and marketing. Headquartered in Mexico City, Mexico Retail Properties’ most recognizable projects are complex, vertical properties located in the country’s population centers: Mexico City, Guadalajara and Monterrey. MRP Group, through its affiliates, also operates multiple institutional real estate funds.
About Fibra Uno
Fibra Uno is a Mexican trust created primarily to acquire, own, develop and operate a diverse range of properties, including industrial, commercial and offices in Mexico. Our objective is to provide attractive returns to our CBFI holders, through stable cash distributions and the appreciation of our real estate. The Trust began operating on the Mexican Exchange Stock on March 18, 2011. Currently, it has 319 properties in 29 states of Mexico with a rentable area of approximately 3.2 million square meters. Fibra Uno is always analyzing a number of properties to buy and rent, in order to increase the income of its portfolio. Under Mexican law, a REIT must invest at least 70 percent of its assets in real estate for lease, among other requirements. Additionally, a REIT must distribute at least 95 percent of its annual taxable income to CBFI holders at least once a year. These, combined with a solid performance of the real estate market in Mexico and a team with over three decades of experience in the real estate industry, make Fibra Uno a compelling investment story. Fibra Uno is internally managed by F1 Management, S.C., and is externally advised by Fibra Uno Administración S.A. de C.V., whose top executives have over 30 years in the development and operation of real estate in Mexico.