July 25, 2012 / 7:44 PM / 5 years ago

Mexican developer Vesta has $400 mln expansion plan

MEXICO CITY, July 25 (Reuters) - Mexican industrial real estate developer Vesta, which last week went public on Mexico’s stock exchange, expects to spend $400 million on expansion plans over the next three years, its president said on Wednesday.

Corporacion Inmobiliaria Vesta raised 3.367 billion Mexican pesos ($246 million) in its initial public offering last Thursday, not including an overallotment or greenshoe that will add 15 percent more shares to the original offering of 177.2 million.

Vesta is also expecting to raise $200 million in debt to complete its investment plan, Chief Executive Lorenzo Berho said.

“(Those) resources are what the company will count on for its future growth and to get going in the next three years,” he added.

The expansion plan will prioritize developing its business of building customized industrial parks, he said.

Vesta’s property, based around the aerospace sector in Queretaro state, includes tenants such as Bombardier, the world’s biggest business jet manufacturer, and Meggitt, an aerospace supplier.

The company is one of the biggest industrial real estate developers in Mexico, with a portfolio of 85 properties across 11 states in the country.

Vesta shares were unchanged Wednesday at 19.15 pesos.

Vesta’s IPO was the second this year on Mexico’s stock exchange, following the April listing of Alpek, a unit of Mexican conglomerate Alfa.

$1 = 13.6870 Mexican pesos Reporting by Lizbeth Salazar; editing by Gunna Dickson

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