As the issuance of Mexico's first public REIT approaches, the sector's potential is again a topic of conversation among structured finance cognoscenti. "The start-up phase is likely to be slow, but these deals will be increasingly attractive," said a source at the Mexican Securities Exchange. He estimated that there were $5 billion worth of A' and A+' rated office property in the major conurbations of Mexico City, Monterrey and Guadelajara that were a "natural market" for FIBRAs, as REITs are known locally. He added that the same would go for roughly $6 billion in A'-rated industrial properties in the same areas. "I think that if we've covered 10-to-15% of that in the next couple of years, we'd be good," he said.

Timed to price by the end of the month, Casablanca Trust is a Ps300 million ($28 million), 24.5-year FIBRA containing five private sports clubs ultimately owned by Grupo Propulsa. Multivalores is the arranger. Pricing will come to between 250 basis points and 350 basis points over 28-day TIEE, to be paid out monthly. "It has a reference that is understandable to the market," said Fernando Lezama, deputy director of corporate finance at Multivalores. "We believe that this [public REIT] will lift the lid off the others."

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