The news has been good for some industrial park operators in Mexico. At least two park developers announced major new tenants and expansion plans recently.

      Meanwhile, the state of Nuevo León and a Texas-based developer have announced plans to increase the competitiveness of the Interpuerto and the Dallas Logistics Hub as a result of improved logistics systems between Monterrey - Saltillo, Mexico and the southern sector of Dallas County, Texas.

ProLogis properties

      ProLogis, the world’s largest owner, manager and developer of distribution facilities, has leased 240,000 square feet of distribution space to two customers at a distribution park it is developing in Ciudad Juárez, Chih.

      Jorsa Logistics, a Juárez-based provider of third-party logistics services, has leased a recently completed, 180,000-square-foot warehouse at the park, known as ProLogis Park Independencia. EP Logistics, also a third-party provider of logistics services, has leased more than 60,000 square feet in a separate facility completed earlier this year. Both companies will use the park to provide regional warehousing and distribution services for clients in Juárez.

      “We are very pleased to announce these new agreements,” said Silvano Solis, senior vice president and regional director for ProLogis in Mexico. “Demand for modern industrial space in the Juárez market remains strong given the city’s large labor pool and the access it offers to markets in the United States. We are fortunate to have established a high-quality portfolio of land and assets here, with which we are able to serve the warehousing requirements of multinational companies involved in border trade.”

      ProLogis Park Independencia is about six miles from the Zaragoza Bridge, one of the primary border crossings between Juárez and El Paso, Texas. Phase II of construction at the park, comprising two facilities totaling more than 212,000 square feet, was scheduled to begin in the second half of 2007. ProLogis currently operates more than 1.21 million square feet of industrial space at other locations in Juárez.

      ProLogis also announced that it has formed four new property funds that will own state-of- the-art distribution centers in Europe, the United States, Mexico and South Korea.

      The new funds have a combined capacity of more than $14 billion. They will serve as exclusive investment vehicles for properties from ProLogis’ development pipeline in their respective regions and will have the ability to make third-party acquisitions that meet the respective funds’ criteria.

      “Together with the capacity in ProLogis’ existing funds, we now have fund agreements in place to support $33 billion of assets under management in funds — more than double the $14.2 billion of assets under management at the end of the second quarter,” said Jeffrey H. Schwartz, ProLogis chairman and chief executive officer. “We expect to see a commensurate rise in fund management fee income as these new equity commitments are invested over the next three years.”

      Schwartz noted that the European and Mexican funds were oversubscribed. “These new fund agreements illustrate the quality of our worldwide platform, as well as the global nature of the company’s capital relationships,” Schwartz said. “Our investment management business continues to serve as a powerful growth engine for ProLogis, allowing us to continue to serve our growing global customer base while redeploying capital efficiently and increasing and diversifying our revenue.

      “Taken together, our recent investment management activity represents a transformative event for ProLogis,” Schwartz said. “We are building an investment management business on a scale unmatched in our industry. At the same time, we are enabling our fund partners to achieve their investment objectives by delivering stable cash flows, asset appreciation and access to the world’s leading industrial platform.”

  ProLogis MX Industrial Fund LP will function as a closed-end fund with a total expected capitalization of approximately $1.5 billion, including $625 million of equity and targeted leverage of 55 to 60 percent. ProLogis will maintain a 20 percent equity interest in the fund.

      The new fund will comprise nine institutional investors, six of which are repeat investors in ProLogis property funds.

      An initial portfolio of ProLogis’ stabilized Mexican assets will be contributed to the fund, including approximately 3.8 million square feet in five markets, representing an investment of more than $200 million. The properties are currently 99 percent leased to a mix of more than 31 customers.

      “The Mexican industrial market is increasingly attractive for institutional capital,” Schwartz said. “Mexico’s large population, low labor cost and expanding middle class make it a highly compelling distribution market, while the recent shift to a more open, pro-business economy is enabling the country to enhance its competitive position in the global marketplace. Beyond these macroeconomic factors, our portfolio in Mexico enjoys a stable base of high-credit global customers with a high percentage of leases denominated in U.S. dollars.”

      The fund has an initial term of 10 years, which may be extended for an additional five years, and will have exclusive access to ProLogis’ development pipeline and stabilized acquisitions in target markets throughout Mexico. ProLogis will receive property and asset management fees consistent with many of its other property funds and will also have the potential for incentive performance participation.

      Rick Conklin, managing director for global investment management, said institutional investors are seeking to team with developers that have a proven track record of building and managing distribution centers in key markets around the world.

      “Over the past decade, ProLogis has successfully established itself as a strategic partner to some of the world’s largest and most sophisticated real estate investment companies,” Conklin said. “These investors are attracted by our reputation for quality, the strength of our development pipeline and the depth of our relationships with global customers. We will continue to leverage institutional demand for our distribution centers to drive future growth and create long-term value for the company.”

      ProLogis is one of the largest providers of industrial distribution space in Mexico with more than 12.7 million square feet owned or under development, concentrated around the markets of Mexico City, Guadalajara, Tijuana, Juárez, Reynosa and Monterrey. The company also has land positions available to support an additional 12 million square feet of development.

Guadalajara development

      AMB Property Corporation, a leading global developer and owner of industrial real estate, has expanded its presence in Guadalajara, Jal. with an acquisition of 324,000 square feet. The three-building campus, named AMB Arbolada Distribution Center, was acquired in a sale-leaseback transaction and is fully leased to a leading German automotive parts supplier, developer and manufacturer of lighting technology and electronics for a 15-year term.

      “This sale-leaseback transaction provides AMB the opportunity to further strengthen our relationship with an existing customer in Mexico, who also leases with us in the Mexico City market. Additionally, the transaction, completed with local partner G. Acción, enhances our position and increases our visibility in the Guadalajara market where our portfolio of operating and development property now totals more than 3 million square feet,” said Gene Reilly, AMB’s president, North America.

      AMB Arbolada Distribution Center is located in the well-established El Salto industrial submarket in Guadalajara, with rapid access to the highway that connects the property to downtown Guadalajara and Guadalajara Miguel Hidalgo y Costilla International Airport.

      AMB acquired AMB Arbolada Distribution Center on behalf of its Mexico fund, a co-investment joint venture that invests in distribution facilities in targeted markets in Mexico.

      “The El Salto Corridor submarket of Guadalajara is home to a diverse set of leading companies serving the automotive, consumer goods and electronics industries,” said Kim Snyder, AMB’s managing director, Southwest Region. “We are pleased to have worked with this customer in this structured sale, and look forward to continuing to provide them with strategically-located, efficient facilities in Mexico.”

      AMB’s Mexico portfolio is comprised of operating and developing real estate in Guadalajara, Mexico City, Querétaro and Tijuana — a portfolio totaling approximately 6.7 million square feet.

      AMB Property Corporation is a leading global developer and owner of industrial real estate, focused on major hub and gateway distribution markets throughout North America, Europe and Asia. As of June 30, 2007, AMB owned, or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 136.7 million square feet (12.7 million square meters) in 44 markets within 13 countries. AMB invests in properties located predominantly in the infill submarkets of its targeted markets. The company’s portfolio is comprised of High Throughput Distribution facilities –­industrial properties built for speed and located near airports, seaports and ground transportation systems.

Dallas-Nuevo León

      Mexico-based INVITE and the Texas-based Dallas Logistics Hub signed a historic Memorandum of Understanding (MOU) recently to focus on improving the security, speed and efficiency of moving goods between these two major logistics centers.

      INVITE, an entity of the state of Nuevo León, which is developing an inland port and manufacturing facility, and The Allen Group, which is developing the 6,000 acre Dallas Logistics Hub in southern Dallas County of Texas, have signed a Memorandum of Understanding that will create an efficient new trade corridor between Mexico and the United States.

      The MOU establishes a collaboration of the parties on several issues, including the designation of a customs pre-clearance zone for the development of integrated logistics systems connecting the Interpuerto in Monterrey - Saltillo, and the Dallas Logistics Hub in Dallas County, Texas. The objective on both sides of the border is to improve the competitiveness of enterprises established at both locations.

      “Customs pre-clearance is important for both parties as it will expedite the flow of goods between Nuevo León and Texas and provide additional security for enterprises operating within the facilities,” said Ambassador Francisco Javier-Alejo, Nuevo León’s executive coordinator for INVITE.

      Texas Secretary of State Roger Williams has focused on the promotion of trade and the flow of goods between Mexico and the United States through NEMEX-TX. “This is just the type of partnership we want to see,” said Williams. “It’s good for Texas, and it’s also good for our neighbors to the south in Mexico.”

      The parties anticipate that new jobs will be created as a result of the improved competitiveness of U.S. and Mexican enterprises and that these enterprises will be able to compete with manufactured products from other parts of the world.

      According to the parties, their collaboration and understanding is motivated by the fact that inefficient logistics systems in the movement of goods between Mexico and the United States is a major impediment to their ability to compete with products imported from other parts of the world. The MOU will facilitate the development of a new and proprietary transportation system to help address these inefficiencies.

      “This proprietary transportation system will result in better delivery times and increased competitiveness of Mexican goods being delivered to the Dallas Logistics Hub,” said Dan McAuliffe, president of The Allen Group, the entity constructing the Dallas Logistics Hub.

      INVITE is currently involved in several initiatives to create improved logistics systems between the states of northeastern Mexico and Texas, designated as NEMEX-TEX, including the development of Monterrey as a logistics gateway.

      The Allen Group, one of the nation’s fastest growing privately held commercial development firms, specializes in the development of high-end industrial, office, retail and mixed-use properties throughout the United States. The company’s major focus is the development of logistics parks — inland ports — that are situated adjacent to some of the most sophisticated rail, intermodal and highway infrastructure in the country.