Our Clients

* Bridgestone (2013-2014)
Daifuku (2013)
* EKK Eagle Industries (2013)
* G-TEKT Corp (2013-2014)
* Hiruta Kogyo (2012)
iGate (2009)
* ISS America/Iino Manufacturing (2013-2014)
* KI USA (2014)
NOK Corporation (2013)
Nitto Kohkei (2016)
* Parker Trutec Mexicana (2016)
* Sankyo Kasei (2012)
* Shinsho/Kobelco Group (2013)
* Shinano Kenshi (2014)
Sojitz Corporation ( 2005)
Tokura Corporation (2014)
* Topy Fasteners ( 2015)
* Yutaka Giken (2012)
* Yuken Corporation (2014)
* Yuken Surface Technologies (2015)

*Manufacturing Operations

Real Estate Practice for Industrial (Manufacturing/Assembly) Projects

For many years now, partners of SLG Mexico have advise foreign corporations from the U.S., Canada and Asia (Japan, South Korea, Hong Kong, China, Malaysia, Singapore, Taiwan, India), in the opening and operational processes of manufacturing/assembly plants in different regions of Mexico, in such important sectors of the Mexican economy as: automotive, textiles, plastic injection, electronics, IT, food & beverage, and trading.

 Real Estate Practice

SLG Mexico´s partners have a diversified real estate experience. Our expertise includes representation of major national and multinational corporations on both sides of a real estate operation, including implementation of all kinds of transactions:
(i) preparation of site selection studies for the ideal location of new or expansion projects;
(ii) financing in connection with real estate projects;
(iii) construction/opening of manufacturing or assembly plants, office buildings;
(iv) structuring and creation of foreign investment trusts and other investment vehicles;
(v) acquisition of land, or existing buildings;
(vi) due diligence, including title search, title opinions, environmental, construction and zoning regulations;
(vii) preparation of contractual frame, including its negotiation and implementation;
(viii) the negotiation, drafting and implementation of easements, servitudes and use rights for infrastructure facilities and installations, and
(ix) the preparation of all kinds of transactional documents, contracts and agreements, in conducting due diligence work, and dealing/negotiations with federal, state and municipal governmental authorities, the Public Registries of Property, environmental matters and land zoning matters.

Land Purchase in Mexico (General Information)

(i) According to the Mexican Law, corporations with foreign investment participation can acquire land in any place within the Mexicana territory. The Law also provides that Foreign Direct Investment (FDI) may acquire real estate within the so-called “restricted zone” (i.e. the strip of land 100 kilometers wide along the border and 50 kilometers wide along the coast). This rule applies for industrial facilities and housing premises to be used by employees working at the facilities; consequently, foreign investors may acquire such properties without restrictions.

(ii) Foreign individuals may acquire residential real estate within the restricted zone, through the incorporation of a trust mechanism, by which the foreigner becomes the exclusive beneficiary of the rights to use such property.

(iii) In the specific case of manufacturing/assembly plants, location is a key decision to be made, not only due to the proximity to customers, but also considering infrastructure available, industrial costs and incentives granted by the State and Municipal authorities.

These incentives basically refer to: tax exemptions; training programs; special prices for land and improvement of infrastructure.

(iv) Under Mexican Law, an acquisition of real estate requires compliance with different formalities, to secure proper title (e.g. due diligence to confirm no liens and encumbrances; incorporation of a subsidiary, execution of different agreements with governmental agencies and/or private entities such as developers, industrial parks, obtaining of licenses, environmental, zoning).

(v) When acquiring land, other considerations must be taken into account, since in some cases, the government (city, state or federal) could be the owner of the land, or in some other cases an industrial park; private owners or agrarian communities (Ejidos) may be the owners. In any of the foregoing cases, different legal formalities must be accomplished, in order to have proper legal title on the properties. For instance in the case of the Ejidos, it is possible to acquire land from them, however, a special process is required in order to purchase land from the Ejido, by obtaining special approvals from the Board.

(vi) All real estate acquisitions must be legalized before a Public Notary, who will issue the title certificated included at a public deed.

(vii) Real estate acquisition, generates different taxes and duties such as:
Transfer of Property Taxes, Valued Added Tax (on constructions), appraisal expenses, registration duties with the Public Registry of the Property and other duties imposed by different authorities, depending on the nature of the project (environmental, land use, government concessions, permits, licenses).