World Construction Network

Daily Newsletter

07 August 2023

Daily Newsletter

Real estate investment trust FIBRA Macquarie México has begun construction on its industrial development project in Tijuana, Baja California, Mexico.

The project involves the construction of a 25ha plot of land in Tijuana’s submarket of Libramiento.

Upon completion, the project will include three industrial buildings totalling 875,000ft² to meet the expanding need for industrial space in northern Mexico.

The first building, with 410,000ft² of gross leasable space, is under construction and is slated to open in the first half of next year. Key service feasibility studies have already been completed, which include road, water, and electricity access.

FIBRA anticipates investing approximately $90m in the development of the industrial park, indicating the company’s commitment to the region’s economic growth and its industrial sector.

In addition, the project is intending to meet the highest environmental requirements, with the goal of environmentally certifying each structure and minimising its environmental imprint as much as possible.

FIBRA CEO Simon Hanna said: “We are excited to celebrate this milestone with the ground-breaking ceremony of our new industrial development project in Tijuana.

“This project marks a pivotal step in our commitment to fostering economic growth and development in the region and capitalising on the accelerating nearshoring activity into Mexico.

“We currently have a portfolio of 38 properties in the state of Baja California [Mexico], hosting 57 companies and contributing thousands of jobs to the state’s economy.”

ESG 2.0 marks a shift towards stricter environmental rules

ESG is moving into a different era, which we call ESG 2.0. While ESG 1.0 was driven by voluntary corporate action, spurred by pressure from activist consumers and investors, ESG 2.0 is being driven by a new wave of government policies. The EU has taken the regulatory lead, with rules introduced or in the pipeline that will price emissions, regulate the use of the terms ‘ESG’ and ‘sustainability’ in marketing materials, and make ESG reporting mandatory. The US has taken a different approach, favoring less regulation and more financial support in the form of tax breaks for clean industry (renewables plus nuclear and hydrogen). China is planning to expand its emissions trading system to more sectors, decarbonize its heavy industry, and ramp up its use of renewables. The new policy direction is mainly motivated by the ambition to hit net zero emissions targets. But on top of this, governments are now competing for clean industry and trying to challenge China’s leadership on the production of the world’s green technologies such as solar panels and batteries, as well as the production and refinement of materials needed for energy transition such as lithium. These driving forces are leading to policy that will impact every sector, not just heavy industry, and will keep ESG near the top of the regulatory agenda over the longer term.