Mexico Retail Properties (MRP) is focused on the development, acquisition and ownership of shopping centers throughout Mexico. In response to the rapidly expanding consumer class in Mexico, MRP was created to be a fully integrated and highly disciplined developer, owner and operator of U.S.-style “big box” shopping centers leased on a long-term basis to high-quality international retailers. Since formation in 2003, MRP has created a large-scale portfolio of multi-anchor community and power centers similar to those found throughout the U.S., anchored by high-quality multinationals such as Walmart, Home Depot, Costco and leading Mexican retailers. Today, MRP not only enjoys a competitive advantage in terms of capitalization, but also has distinguished itself as the most active developer of Walmart stores in Mexico and a leading company at the forefront of the modernization and institutionalization of Mexico’s retail sector. EI monetized its ownership interest in MRP through a private sale in 2008.
The retail industry in Mexico is currently experiencing substantial growth. The industry’s momentum is attributable to relatively low penetration by supermarkets, aggressive searches for new locations, densely populated urban centers, and a young population. There is room for considerably more growth as there are only 850 square feet of formal retail floor space for every 1,000 inhabitants in Mexico, as compared to 980 square feet in Brazil and 4,445 square feet in the United States. The country’s retail landscape is changing as retailers are forced to implement economies of scale, better negotiate with suppliers, and invest in direct distribution and information technology. Large retailers are gradually gaining market share from smaller local retailers and expanding into less-penetrated regions, driving demand for large floor- plate shopping center formats.
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