Already familiar to Brazil's domestic market, a financing vehicle for construction company Grupo Walter Torre is taking root in Mexico. "It's nearly identical to the deals done in Brazil," said a source close to the transaction. Spanish bank Santander is readying a deal for up to 131.5 million of UDI inflation units (US$40 million), backed by rights to 10-year rental contracts between Walter Torre unit WTN Desarrollos Inmobiliarios de Mexico and food giant Nestle. The deal marks the Mexican debut of this asset class. Legal final maturity is set at nine years.
The contracts are linked to the property and construction of storage facilities in Lagos de Moreno in the state of Jalisco and Toluca in the state of Mexico. The rights to real estate insurance taken out by WTN will also be transferred to the vehicle.