Manufacturing and Assembly Industrial Sale Leaseback in Mexico

Background:

Ascension Advisory represents a private equity owned leading global manufacturer in bumpers/fascia, grilles, exterior trim and subsystem components. The client occupies a manufacturing and assembly facility in Queretaro, Mexico. The location is a key manufacturing and storage facility for the business, totaling over 76,000 SF and 4.56 acres of land.

Client Objective:

The private equity firm is a repeat client of Ascension, who recognized the value created through the sale leaseback transaction and the opportunity to free up capital for reinvestment into their business and operations. The private equity firm also does not like to own real estate, and tries to execute sale leasebacks whenever possible, redeploying the capital into a higher and better use. 

Solution:

Ascension ran a competitive bidding process through their wide buyer network of mostly local investors in Mexico. The process generated multiple bids. Ultimately an offer was accepted from a family office located in Mexico City, only a couple of hours away from the asset. The buyer was able to fully value the asset due to their expansive knowledge of the area and produced a very competitive set of terms along with an all-cash offer. Both buyer and seller were satisfied with the outcome and all parties look forward to the partnership.