Tuesday, August 22, 2023
By Jessica Hernández
Real Estate Advisor & Marketing Analyst
The word FIBRAs refers to the translation from Spanish Fideicomisos de Inversión en Bienes Raíces, which in English is Real Estate Investment Trusts, and they are in charge of renting and managing properties that offer a return, within the portfolio of properties are residential, commercial premises, offices, shopping centers, hotels, etc. The person in charge of managing said properties is called a trustee.
In this way, fibers are understood as capital investments that offer the investor the possibility of generating enormous profits, and for their part, the property contributor, the financing of real estate assets through the issuance of certificates in the Stock Market, through a public offering by distributing them among the investing public.
How do they work?
- Establishment of the Trust that will manage the properties.
- The contributor donates the real estate to the trust
- The managing entity places the certificates of participation of the properties in the Mexican Stock Exchange so that the investing public can participate. The money obtained is delivered to the donor (owner) of the property.
- The trust is managed by experts in the real estate market who are responsible for the maintenance, marketing, and administration of real estate.
- 95% of the annual profit obtained from the rental of the assets is distributed among the holders of the certificates.
- When the investor requires liquidity, he uses his brokerage house to sell his participation in the trust.
Among its advantages we can find the following:
- Investment from very accessible amounts.
- Sources of income through rents and capital gains from revaluation of the property.
- Tax benefits (for the contributor of the goods)
Interested in more real estate topics? Do not miss our weekly articles. For more information or questions, contact us at info@silmexico.com or at 951 127 1380.
