Background on Fibra Inn and Terrafina
Fibra Inn and Terrafina are Mexican real estate investment trusts (Fibras) that have experienced significant growth in recent years. Fibra Inn focuses on acquiring and developing hotels, while Terrafina’s portfolio centers around industrial real estate. Both companies play a crucial role in Mexico’s real estate sector by managing the acquisition, development, leasing, and administration of properties.
The Role of Fiduciaries in Fibras
Fiduciaries are essential to the functioning of Fibras, as they manage and oversee the trusts’ assets. In this context, fiduciaries are responsible for administering the Fibras’ portfolios and ensuring that their objectives are met.
US Treasury’s Accusations and Actions
On Wednesday, the US Treasury Department accused CIBanco, along with Intercam and Vector Casa de Bolsa, of money laundering related to the illegal trafficking of opioids. All three institutions denied these allegations.
In response, the US Treasury prohibited certain transactions with CIBanco, Intercam, and Vector Casa de Bolsa. The Mexican regulatory body intervened in all three financial institutions the following day.
Fibra Inn’s Decision
Fibra Inn announced that its technical committee decided to remove CIBanco as its fiduciary. This decision was made unanimously during a meeting on Thursday.
Fibra Inn clarified that CIBanco manages the trust’s assets separately from its own, and it can only use them to fulfill Fibra Inn’s instructions.
Terrafina’s Approach
Terrafina stated that it will seek approval from its shareholders to also exit CIBanco as a fiduciary.
Additionally, Terrafina mentioned that it is taking measures to address any potential risks posed by the order or administrative intervention for its investors, clients, and other interested parties.
Key Questions and Answers
- What are Fibras? Fibras, or Mexican real estate investment trusts, are companies that focus on acquiring, developing, leasing, and managing properties, primarily industrial real estate.
- Why is the relationship between Fibras and fiduciaries important? The fiduciary plays a crucial role in managing the Fibras’ assets and ensuring that their objectives are met.
- What accusations did the US Treasury make against CIBanco? The US Treasury accused CIBanco of money laundering related to the illegal trafficking of opioids.
- How did CIBanco respond to the accusations? CIBanco, along with Intercam and Vector Casa de Bolsa, denied the allegations of money laundering.
- What actions did the US Treasury and Mexican regulatory body take? The US Treasury prohibited certain transactions with the accused institutions, and the Mexican regulatory body intervened in all three financial institutions.
- How did Fibra Inn and Terrafina react to these developments?
- Fibra Inn removed CIBanco as its fiduciary.
- Terrafina plans to seek shareholder approval to also exit CIBanco as a fiduciary.
