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.
