A REIT is a basket of properties that are bundled together in a fund so people can invest in them. The idea of REITs started in the United States and spread from there. Entrepreneur Max El-Mann Arazi co-founded Fibra Uno, which is the most successful REIT in Mexico.
— Max El-Mann Arazi (@MaxEl_MannArazi) June 29, 2020
To offer investors diversity, Max El-Mann Arazi has invested in many types of properties. His company’s portfolio includes commercial and industrial buildings. It owns office towers, shopping malls and hotels. It also owns residential developments. The properties are all over Mexico, which is also a way of creating diversity.
He’s attracted major companies to Fiber Uno’s properties. Max El-Mann Arazi said they provide stability that smaller companies can’t offer. One of his customers is Uber, and another one is a multinational phone company. He also leases properties to small- and mid-sized companies. See This Article.
His company owns the buildings and makes money from leasing them. Max El-Mann Arazi said Fibra Uno manages the buildings itself and does all the maintenance. Profits are returned to investors in his company’s REIT. He said a REIT is a great way to diversify an investment portfolio instead of just relying on stocks and bonds.