lobal digest
Upgraded Product Roster Boosts Maquiladoras
Despite the threat from China, Mexico’s manufacturing sector is thriving, largely
due to its production of sophisticated goods. That was the central theme of
“Mexico’s Maquiladoras—Climbing the Ladder of Success,” a research report
published by ProLogis.
Since 2003, the country’s export manufacturers have “moved away from
low-value-add goods like textiles and into electronics, aerospace and other
high-value-add industries,” says Leonard Sahling, first vice president of
ProLogis Research Group in Denver. “The maquiladoras generally are foreign
owned. Mexico provides them with a good platform with close proximity to the
US. It wasn’t an orchestrated response by the Mexican authorities, but more of
an endogenous response from the manufacturers themselves.”
It was also a response to China’s admission to the World Trade Organization
in 2001. “Given the significant wage disparities, Mexico realized that its global
competitiveness would erode unless it could produce higher-priced, customized
products,” write the report’s authors, Sahling and research analyst Amanda Buie.
However, the country passed two major tax reforms in 2007 that are impacting maquiladoras. One was the establishment of a flat tax levied on all corporations, whether domestic or foreign owned. The rate was set initially at 16.5%
and will increase to 17.5% in 2010. That same year Mexico’s maquiladoras lost
their preferential tax treatment and are now considered on par with domestic
manufacturers.
Although international companies will now pay more taxes to Mexico, those
additional levies can be offset by the payment of fewer taxes in their home
countries, according to Sahling. Plus, Mexico’s increased tax collections will be
used to improve its infrastructure and educational system, thus making the
country’s economy competitive on the world stage.—Maria Wood
Project Fetches Highest Platinum LEED Score
A residential project under way in Victoria, British Columbia, Canada recently
obtained the highest point total for LEED Platinum certification. The Canada
Green Building Council awarded 63 points to the first phase of Dockside Green,
according to Perkins and Will, the architect for the 15-acre development.
The first phase of the project, called Synergy, is already open with most of its
more than 200 condos occupied, says Robert Drew, associate principal at
Vancouver, Canada-based Perkins and Will. Balance, the second phase, slated for
completion in February 2009, will comprise 171 condominiums, townhomes and
penthouses. At full build-out, Dockside Green will be home to about 2,500 residents in 26 buildings totaling 1. 3 million sf. The complex will also feature
live/work, retail, office, light industrial and hotel space as well as public amenities.
Among the community’s more unique
sustainable characteristics are an on-site
wastewater treatment plant; a biomass
gasification facility that converts local
wood refuse into clean-burning gas to
produce heat and hot water; and a solar-
sensing awning that automatically
unfolds to protect residences from the
sun’s heat, Drew details. “Typically the
Synergy developer would plug into an existing
infrastructure,” he says. “In this case,
they built these facilities right on site.” Co-developing Dockside Green are
Windmill West and Vancity Credit Union. The builder is Farmer Construction. The
developers declined to release an estimated project cost.—Maria Wood
BEHRINGER HARVARD REIT
INVESTS IN CENTRAL EUROPE
Dallas—Locally based Behringer Harvard
has invested in a joint venture with a
Scottish company that will hold a portfolio
of 15 retail and industrial/logistics facilities
in the Czech Republic, Poland and
Slovakia. Financial details were not disclosed. Partners in the transaction include
Behringer Harvard Opportunity REIT I Inc.
and St. Wenceslas Property Fund, an
investment vehicle managed by
Edinburgh-based Hunter Property Fund
Management Ltd.
BACCARAT HOTEL RISES IN DUBAI
Dubai, United Arab Emirates—A
Baccarat Hotel and Residences will rise
within the Dubai Pearl mixed-used devel-
Baccarat Hotel and Residences
opment here under the sponsorship of
Starwood Capital Group and Pearl Dubai
FZ LLC. The $680-million project, scheduled for delivery in 2011, will consist of a
342-key hotel as well as more than 80
luxury apartments and condominiums.
LASALLE LAUNCHES
SPECIAL SITUATIONS UNIT
London—LaSalle Investment Management
has established a unit that will scour the UK
and Continental Europe for potential acquisitions. The special situations team will evaluate potential investments in large-scale
JVs; private REOCs; corporate sale-leasebacks; structured debt and equity interests;
distressed debt and public company buy-outs. The group will target opportunities at
the higher end of risk/return spectrum.
Chicago-based LaSalle has recruited Amy
Aznar as director. She will be based here
starting next month. ◆
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