New York, NY
– Paul Hastings LLP, a leading global law firm, represented the initial purchasers in connection with the initial public offering by Fibra Inn on the Mexican Stock Exchange. Fibra Inn is the second lodging Real Estate Investment Trust (REIT) in Latin America and is the fifth publicly traded Mexican REIT to be created in the wake of a comprehensive legal overhaul in Mexico that created the “FIBRA”, a new Mexican investment vehicle, which bears many similarities to the U.S. REIT. The offering involved the issuance of approximately $300 million in Fibra Inn’s stock publicly on the Mexican Stock Exchange and internationally pursuant to Rule 144A and Regulation S. The initial purchasers involved in this transaction were Credit Suisse and Santander.
Paul Hastings attorneys also represented the underwriters in the IPO by the only other lodging REIT in Latin America (FibraHotel) and have been engaged as counsel in five of the six equity offerings by Latin American REITS closed to date, which is more than any other law firm. The introduction of the FIBRA asset class has transformed the Mexican real estate market as many other Mexican real estate companies are seeking to follow the trend of repackaging their real estate holdings into newly-created FIBRAs in order to capitalize on the investor demand for FIBRA securities. The FIBRA investment vehicle provides a transparent and liquid vehicle to allow for individual investors, as opposed to a limited number of families, to own and trade in real estate in Mexico. Paul Hastings attorneys, using their strong real estate and Latin American franchises, are already working on several other FIBRA transactions.
In response to high demand for Fibra Inn’s stock, the current offering featured a “hot deal option” whereby the underwriters could upsize the offering size by 20% at the time of pricing. Because of the heightened interest in the deal at the time of pricing, the underwriters elected to exercise their hot deal option and increase the offering size to its current amount. The hot deal option was first introduced to the Mexican market by Fibra Uno in its recent $1.75 billion follow-on offering, in which Paul Hastings attorneys represented the underwriters.
Latin America practice partners Mike Fitzgerald
and Arturo Carrillo
led the Paul Hastings team, which also included associates Chad MacDonald
and Emily Winston
and foreign associate Alfonso Monroy Mendoza. Paul Hastings LLP is a leading global law firm with offices in Asia, Europe, and the United States. We provide innovative legal solutions to financial institutions and Fortune 500 companies. Please visit www.paulhastings.com for more information.