Information on the target
Logistic Properties of the Americas (LPA) has successfully received approval from the National Institute for the Defense of Competition and the Protection of Intellectual Property (Indecopi) for the sale of the Lima Sur Logistics Park, located in Lurín, to Fibra Prime for a total consideration of US$ 145 million. This approval was the final regulatory requirement needed to finalize the transaction, leaving only standard administrative closing procedures. The deal involves the sale of 100% of the asset, which encompasses approximately 1.3 million square feet of logistics space.
The announcement of this agreement was made in June and was contingent upon receiving the necessary regulatory approvals. For LPA, this transaction is part of a broader capital reallocation strategy aimed at expanding its presence in key markets. The company anticipates net proceeds of approximately US$ 85 million, after debt repayment and before taxes, which it plans to primarily invest in Mexico, identified as a crucial growth market.
Industry overview in the target’s specific country
The Integrated Logistics Operators industry in Peru has been experiencing significant growth, driven by the increasing demand for efficient supply chain solutions and the expansion of e-commerce. The logistics sector has become a vital component of the Peruvian economy, as businesses seek to optimize their operations and reduce costs through integrated logistics services. This trend is further supported by the government's initiatives to improve infrastructure and connectivity across the country.
Peru's geographical advantages, including its strategic location along the Pacific coast, facilitate trade with major markets in Asia and the Americas. The logistics industry is characterized by a diverse range of players, from large integrated operators to specialized service providers, all competing to offer comprehensive solutions that encompass warehousing, transportation, and value-added services. The growth of the retail sector, particularly e-commerce, has intensified the need for modern logistics facilities, prompting investments in state-of-the-art logistics parks.
Moreover, the COVID-19 pandemic has accelerated the digital transformation of supply chains, pushing companies to adopt more agile and resilient logistics strategies. As a result, the demand for integrated logistics operators has surged, with firms increasingly looking for partners that can provide seamless end-to-end solutions. This evolving landscape presents significant opportunities for growth and innovation within the industry, positioning integrated logistics operators as key players in supporting the economic development of Peru.
The rationale behind the deal The rationale for LPA's decision to sell the Lima Sur Logistics Park lies in its strategic focus on reallocating capital towards markets with higher growth potential. By divesting from stabilized assets, LPA aims to enhance its inve…