Financialization process of large scale real estate projects. Real Estate Investment Trust in Mexico City

Abstract

The process of financialization has allowed the reproduction of capital through financial instruments by the extraction of rents. One of them, which has become increasingly important in the last decade in Mexico, is the case of Real Estate Investment Trusts (FIBRAS by their Spanish Acronym), which have boosted the real estate sector. Based on the review of the Reports to Shareholders issued by these trusts and by the Mexican Stock Exchange (BMV), It has been analyzed the way in which these financial mechanisms have allowed the construction of large real estate projects in areas that could be considered inappropriate due to urban rental conditions. By analyzing the Parque Las Antenas shopping center managed by Danhos FIBRA in Mexico City, it allows the discussion of the problems that have been generated in areas where these financial instruments have established their rent seeking real estate projects.