The real estate investment funds are big business in the United States and are approaching south of the border

With more than $ 400 billion in assets, real estate investment funds (Reits, for its acronym in English) are big business in the United States and are approaching south of the border. And therefore, the Mexican Stock Exchange (BMV) hopes to reach that market by launching an instrument similar to stock Reit. The new instrument, which could be called Investment Funds in Real Estate (Fibers, by its initials in Spanish), is a response to the growing demand for real estate development in the Mexican market. Like the Reit, would be invested mainly in real estate, and property prices are included as stock price. The key advantage of the fiber would be to offer real estate investors the option of placing on the market as an exit strategy for investments in the country. According to stock analysts, is an important alternative, as it will provide financing to a sector in which there are many fixed assets that could be made more liquid. In the long run is expected to be opened to private pension funds and banks, since real estate investors are very interested in being able to sell properties through the market. Desarrolladora Homex, a property developer on the northern border, was supported by Equity International Properties (real estate investment fund that invests outside the United States), an investor Sam Zell of Chicago, as well as ZN Mexico Funds, a group private investment in New York. The plan is that property owners trust their contracts real property and income to an investment fund, which issues ordinary shares. Another company will retain the unique role of the ordinary shares and place them on the market. Regulators also expect to authorize the private pension funds in Mexico to invest in Fibras. To date, Afore (Administradoras de Fondos para el Retiro) still invest more than 80% of its portfolio in government bonds.