trending Market Intelligence /marketintelligence/en/news-insights/trending/e20y3_wpi5b06gj-0r915a2 content esgSubNav
In This List

Sale of 310-acre army base site planned in Mexico City

Blog

Using ESG Analysis to Support a Sustainable Future

Video

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Q&A: Streamlining Analytics for TCFD Reporting

Blog

Evergrande and the wider impact: a sentiment analytics based perspective


Sale of 310-acre army base site planned in Mexico City

The Mexican government plans to sell a 310-acre military base site that is one of the last large parcels of developable land in central Mexico City, Reuters reported.

Present zoning for the site allows roughly 25,100 housing units, and the site could sell for up to US$1 billion at auction based on the median price of 24,000 Mexican pesos per square meter for homes in the area, the report noted, citing real estate experts.

The potential sale was announced in a document published in the government's official gazette earlier but was mostly unnoticed by the media, the news outlet noted. The base price for the site would be set by the country's appraisal institute, which did not respond to a request for comment, according to the Feb. 28 report.

A timeline has not yet been set for the sale, nor has the type of auction been determined, the report noted, citing a spokesman for the administration and property transfer service, the federal agency that would manage the sale.

The government intends to hire international brokerage Jones Lang LaSalle Inc. to market the site, the report noted, citing four Mexico City real estate professionals not affiliated with JLL. JLL declined to comment.

According to real estate professionals, the true value of the site is difficult to determine unless the government clarifies whether it plans to sell it as-is or with a zoning change that would allow high-rise developments.

The sale process could end up going into the next administration as President Enrique Pena Nieto's term is slated to end Nov. 30. The prospect of a new development in an already crowded city could also face strong opposition, Reuters pointed out.

Land prices in Mexico City's high-end areas have increased between 50% and 75% over the past five years due to increased competition from buyers, the report noted, citing Cushman & Wakefield.

As of Feb. 28, US$1 was equivalent to 18.84 Mexican pesos.