This week: LPA enters Mexican logistics market with Puebla deal; Edgewell opens $110M plant in Aguascalientes, creating 1,300 jobs; and Yamaguchi MFG opens $14M auto parts plant in San Luis Potosí.
LPA enters Mexican market with Puebla deal
Logistic Properties of the Americas (LPA) recently completed its first acquisition in Mexico: two logistics warehouses in Puebla anchored by tenant DHL.
The transaction marks a significant step in the company’s expansion strategy across Latin America, CEO Esteban Saldarriaga said.
“This first acquisition in Puebla is a milestone, but it’s also just the beginning,” Saldarriaga told FreightWaves in an interview. “Our goal is to reach critical mass in Mexico as part of our billion-dollar asset platform across the Americas.”
The deal was finalized through a joint venture with Inmobiliaria y Constructora Alas, S.A. (Alas) for properties totaling 257,700 square feet that sit across from a Volkswagen auto factory in Puebla, the automaker’s largest manufacturing site outside Germany.
The site plays a critical role in Mexico’s supply chain, supporting automotive production and exports to the U.S. and other Latin American countries for many years, according to officials.
“Our aligned vision and complementary strengths have enabled us to establish a foothold in one of the most strategically vital locations within Mexico’s extensive industrial sector,” Francisco Alvarez, co-CEO of Alas, said in a news release.
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San José, Costa Rica-based LPA (NYSE: LPA) is a developer, owner and manager of modern, sustainable logistics real estate.
Its primary investment focus is on high-growth markets and those with high barriers to entry in Colombia, Peru, Costa Rica and now Mexico.
LPA’s operating and development portfolio includes 33 logistics facilities in Costa Rica, Colombia and Peru, totaling 5.8 million square feet.
The company’s clients are multinational and regional firms engaged in outsourced logistics, wholesale distribution, retail distribution, and e-commerce fulfillment.
Mexico’s logistics real estate market fits into LPA’s broader regional growth strategy, Saldarriaga said.
“We think the [Mexico] market has a little bit more noise, and we think that’s a good entry point for somebody who’s long-term oriented like we are,” he said. “Ultimately, we’re investing in assets that have a useful life of 30, 40, 50 years. So, we think of ourselves as long-term owners, and we behave like long-term owners, and thus partners with these customers, with these tenants.”
Mexico’s scale, proximity to the U.S. and skilled labor force were also factors in the acquisition.
“We see Mexico as irreplaceable from a global supply chain dynamic. It has a young, well-trained demographic and a manufacturing base that has been building for decades since NAFTA and now USMCA,” Saldarriaga said.
He added that LPA intends to pursue growth by following the needs of multinational tenants.
“Everybody thinks about real estate as location, location, location. For us, it’s customer, customer, customer. If a big retailer needs five distribution centers in Mexico, we want to be able to provide them,” Saldarriaga said.
While initial investments will focus on logistics tied to consumption, LPA sees longer-term potential in industrial facilities serving aerospace and automotive sectors.
“Essentially, there are many customers not only in automotive, but in the aerospace industry that are highly technical. These folks also need industrial properties. Replacing that, substituting it somewhere else, would take years of certifications and processes that are very long,” Saldarriaga said.
LPA’s expansion strategy in Mexico centers on the USMCA corridor — covering markets from Mexico City and Querétaro to Monterrey and Reynosa — where demand from multinational tenants is expected to remain strong.
“We like the USMCA corridor. We like being close to that backbone. We like Mexico City. We like Querétaro, San Luis Potosí, Monterrey, all the way up to Reynosa. In the north, we like a few select locations,” Saldarriaga said.he way up to Reynosa. In the north, we like a few select locations,” Saldarriaga said.
Edgewell opens $110M plant in Aguascalientes, creating 1,300 jobs
Edgewell Personal Care Co. recently opened a $115 million facility in the Mexican city of Aguascalientes, creating 1,300 jobs.
The plant, located in the FINSA industrial park, will distribute products worldwide.
Connecticut-based Edgewell, which employs 6,800 people globally and manages 25 brands, has operations in more than 50 countries.
Yamaguchi MFG opens $14M auto parts plant in San Luis Potosí
Japanese firm Yamaguchi MFG México opened a manufacturing plant in San Luis Potosí, with an investment of more than $14 million.
The facility will create 100 direct jobs in the automotive supply chain.
Yamaguchi, a global producer of precision auto parts, said the expansion aligns with its strategy to deepen supply chain integration in North America amid nearshoring trends.
The post Borderlands Mexico: LPA enters Mexican logistics market with Puebla deal appeared first on FreightWaves.
