MEXICO Trends and Developments Contributed by: Michell Nader and Julián J Garza, Nader Hayaux & Goebel
• Legal and institutional framework: The Plan men - tions the possible proposal of legislative initiatives to harmonise the legal framework applicable to infrastructure investment and to strengthen project planning and monitoring mechanisms. Real Estate Mexico is a strategic manufacturing, logistical and distribution centre, not only within the realm of the current trade agreement with the United States, but also for commercial purposes involving jurisdictions in Asia and Europe. The concept of nearshoring has expanded once again the possibility of taking advan - tage of the geographical position of Mexico vis-à-vis the United States and fostering the development of new industrial real estate projects to manufacture and distribute products across a variety of industries. The need for more products and for their delivery in a faster and more cost-efficient manner remains a com - mercial demand. Mexico is a well-developed region with a diverse array of opportunities in this sector. Mexico also remains a top destination for tourism, which has resulted in the development of resort and hotel destinations across multiple regions. Such pro - jects require significant equity investments, financing structures and joint ventures with commercial part - ners.
For real estate projects to flourish, particularly those in the industrial and logistics sectors, adequate infra - structure needs to be provided. This is a significant challenge; nevertheless, commercial and trade rela - tionships between the United States and Mexico are so vast that export and manufacturing companies should continue to benefit from the proximity of Mex - ico to the United States. Trade agreements, including the existing ones with the United States and many European countries, are prompting the expansion of manufacturing facilities in Mexico, particularly in the Northern region, to assemble products and export them to foreign markets. Retail, Logistics and Other Industries A number of additional sectors and industries could encounter M&A activity during the current year, includ - ing the retail and logistics sectors, health-related ser - vices, water treatment, the mining and metallurgical industries, and distribution and transportation ser - vices. There is also strong potential for sales or divestitures of assets or business divisions, including in the finan - cial, telecoms, gas, mining, agricultural, infrastructure and real estate industries, for entities facing financial distress or insolvency situations or which may require new forms of investment.
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