DLA Piper represented Fibra Inn, Mexico’s fourth publicly traded REIT, in a combined offering, valued at approximately US$318 million. The offering consisted of an initial public offering in Mexico and an international offering in the United States to qualified institutional buyers under Rule 144A under the US Securities Act and in other countries outside of Mexico and the United States to certain non-US persons pursuant to Regulation S under the US Securities Act. Assuming exercise of the underwriters’ overallotment option, the total value of the offering will increase to approximately US$358 million.
Under the terms of the deal, Fibra Inn offered 214,316,264 Real Estate Certificates (Certificados Bursátiles Fiduciarios Inmobiliarios), including a 20% upsizing from the base public offer amount, which marks only the second time in the Mexican equity capital markets that a company has done so. Assuming exercise of the underwriters’ overallotment option, the total number of Real Estate Certificates offered will increase to more than 240,000,000.
The net proceeds of the offering will be used to purchase a portion of Fibra Inn’s initial portfolio of hotel properties and to finance future hotel acquisition and development opportunities. Upon completion of the offering and Fibra Inn’s formation transactions, Fibra Inn will own a geographically diversified portfolio of 14 select-service hotels located in nine Mexican states, comprising over 2,400 rooms, affiliated with leading international hotel franchise brands.
The DLA Piper team representing Fibra Inn on the Mexican public offering was led in Mexico City byGuillermo Uribe and included Adrián Gay, Jorge González, Mirna Ordaz, Santiago Soldevilla and Luis Álvarez. The DLA Piper team representing Fibra Inn on the international offering was led in the United States by Christopher Paci in New York and Christine Lehr in Raleigh and included Gerald Rokoff, Lou Anne McInnis and Frank Mugabi in New York, Daniel Gunter and Abigail Jeck in Raleigh, Joseph Hugg in Boston and Chris Edwards in Baltimore.
Members of the DLA Piper team have advised on several other Mexican REIT transactions, including Fibra UNO’s historic IPO on the Mexico Stock Exchange that raised US$300 million in 2011, its US$700 million follow-on offering in April 2012, its US$850 million private placement for a real estate acquisition in September 2012, and its US$1.7 billion follow-on offering in January 2013.
