{"id":141230,"date":"2026-04-30T13:05:18","date_gmt":"2026-04-30T13:05:18","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=141230"},"modified":"2026-04-30T13:52:11","modified_gmt":"2026-04-30T13:52:11","slug":"mexico-real-estate-funds","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/mexico-real-estate-funds\/","title":{"rendered":"Mexico: Real Estate Funds"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-141230","comparative_guide","type-comparative_guide","status-publish","hentry","guides-real-estate-funds","jurisdictions-mexico"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Santamarina y Steta<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2020\/10\/santamarina-steta.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Santamarina y Steta<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2020\/10\/santamarina-steta.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Real Estate Funds laws and regulations applicable in Mexico<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the principal legal structures used for investment in real estate (e.g., limited partnerships and other fund vehicles, real estate investment companies, real estate investment trusts\/ unit trusts)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Mexican market relies primarily on trust structures for investment in the real estate sector, generally regulated by the General Law on Securities and Credit Transactions (Ley General de T\u00edtulos y Operaciones de Cr\u00e9dito \u2013 \u201cLGTOC\u201d).<\/p>\n<p>Ordinary private trusts are used as co-investment vehicles by private individuals to finance and strategically develop specific real estate projects. Meanwhile, in the capital markets, public trusts with diversified portfolios are structured through Trust Certificates, which are publicly offered and exchange-listed securities regulated by the Securities Market Law (Ley del Mercado de Valores \u2013 \u201cLMV\u201d) and the Single Issuers Circular (Circular \u00danica de Emisoras \u2013 \u201cCUE\u201d). Notable among these are:<\/p>\n<p>Real Estate Trust Certificates (Certificados Burs\u00e1tiles Fiduciarios Inmobiliarios \u2013 \u201cCBFIs\u201d), which a trust issues to fund direct investment in real estate. CBFIs are the securities used to structure Real Estate Investment Trusts (Fideicomisos de Inversi\u00f3n en Bienes Ra\u00edces \u2013 \u201cFIBRAs,\u201d the Mexican equivalent of REITs), whose purpose is to acquire or build real estate for leasing, or to provide mortgage-backed financing for such purposes. Subject to certain requirements, FIBRAs may qualify for preferential tax treatment under the Income Tax Law (Ley del Impuesto sobre la Renta \u2013 \u201cLISR\u201d).<\/p>\n<p>Development Trust Certificates (Certificados Burs\u00e1tiles Fiduciarios de Desarrollo \u2013 \u201cCKDs\u201d) and Investment Project Trust Certificates (Certificados Burs\u00e1tiles Fiduciarios de Proyectos de Inversi\u00f3n \u2013 \u201cCERPIs\u201d) are issued by trusts to invest in projects or companies. CKDs are placed through a public offering, while CERPIs are placed on a restricted basis for institutional investors, allowing greater investment flexibility. They are characterized by generating variable returns dependent on the performance of the investments, with no obligation to pay principal or interest, and thus resemble equity instruments. Although they are not exclusively real estate vehicles, they can be used to channel resources to projects and companies in the sector.<\/p>\n<p>In corporate structures, the corporation (Sociedad An\u00f3nima \u2013 \u201cS.A.\u201d) and the limited liability company (Sociedad de Responsabilidad Limitada \u2013 \u201cS. de R.L.\u201d), both governed by the General Law on Commercial Companies (Ley General de Sociedades Mercantiles \u2013 \u201cLGSM\u201d), are commonly used as vehicles both for holding and leasing real estate assets and for integration into trust structures or to back issuances (PropCo\/HoldCo).<\/p>\n<p>Finally, the Investment Funds Law (Ley de Fondos de Inversi\u00f3n \u2013 \u201cLFI\u201d) regulates, among others, Capital Investment Funds (Fondos de Inversi\u00f3n de Capitales \u2013 \u201cFICAPs\u201d), which are S.A.s (corporations) whose purpose is the acquisition and sale of investment assets using funds from the public offering of shares representing their capital stock, operating primarily with shares or equity interests, debentures, and bonds issued by investee companies (sociedades promovidas). Although their scope is general (private equity), they can channel resources into the real estate sector through investment in companies in this sector.<\/p>\n<p>From a tax perspective, trusts are also the predominant legal structure for real estate investment, with treatment varying by the activity conducted. Business activity trusts are taxed under the LISR, while non-business trusts engaged primarily in passive income activities are treated as fiscally transparent. FIBRAs are regulated under the LISR and benefit from a special tax stimulus regime. Capital-development vehicles issuing CKDs or CERPIs may also qualify for the venture-capital trust regime (FICAP) where the LISR\u2019s requirements are met.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do all these structures provide limited liability to the investors? If so, how is this achieved?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In general, applicable regulations design these structures to limit investors\u2019 liability to the amount of their contributions or their contractual investment commitments, without extending that liability to the debts of the vehicle or the trust holding the assets.<\/p>\n<p>In trusts and Trust Certificates (Certificados Burs\u00e1tiles Fiduciarios \u2013 \u201cCBFs\u201d), including FIBRAs\/CBFIs and CKDs, the investor\u2019s limited liability stems from the separation of trust assets and, in the case of CKDs, from the fact that the securities confer economic rights without creating an obligation to pay principal or interest. When the issuer makes capital calls, the holder\u2019s obligation is limited to satisfying them on the agreed terms and to the contractual consequences of non-compliance.<\/p>\n<p>In S.A.s and S. de R.L.s, the LGSM limits partners&#8217; liability to payment of their shares or capital contributions, subject to limited exceptions such as unpaid capital or acts taken before registration. Similarly, the limitation of liability in investment funds regulated by the LFI stems from their nature as S.A. entities and from the segregation and custody of their assets under applicable regulations.<\/p>\n<p>From a tax-liability standpoint, where a trust is predominantly engaged in passive income activities (i.e., at least 90% of its income derives from leasing, in accordance with the Mexican Tax Miscellaneous Resolution), the trust is treated as fiscally transparent and each investor is liable for taxes attributable to its participation; the trustee withholds 10% on gross rental income on behalf of Mexican-resident individuals and is jointly liable for such payments under the Federal Tax Code. In business activity trusts and FIBRAs, the trustee calculates, withholds, and pays income tax on behalf of the beneficiaries under rules applicable to companies, with investors\u2019 economic exposure capped at the amount of their contributions or CBFIs, as applicable. For legal entities, the entity itself bears the primary tax liability; shareholders or partners may be held liable only in the limited circumstances set out in the Federal Tax Code (e.g., failure to maintain accounting records, abandonment of the tax domicile, or failure to remit withheld taxes), and only up to the value of their interest in the entity\u2019s capital stock.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does structure depend on sector (residential, industrial\/logistics, office, living, retail) or investment strategy (core, value-add, opportunistic)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The regulations do not assign different vehicles by real estate subsector, nor do they establish a formal correspondence with the investment strategy. The choice depends primarily on the project\u2019s economic purpose, tax strategy, and the required method of raising capital.<\/p>\n<p>However, it is possible to identify certain recurring practices in the Mexican market. In the private sector, joint venture projects are typically structured through commercial companies or ordinary trusts, the choice of which depends primarily on the level of control, corporate governance, and contractual protection required by the parties. This type of structure is more common in smaller-scale projects. On the other hand, projects seeking to scale up or access institutional or public-investor capital tend to be channeled through trusts that issue CBFIs.<\/p>\n<p>&nbsp;<\/p>\n<p>Meanwhile, FIBRAs, due to their treatment under the LISR, are typically associated with core or core-plus strategies; that is, stabilized assets with predictable cash flows and lower risk (industrial\/logistics, retail, office, rental housing). Meanwhile, value-add and opportunistic strategies (which involve development, repositioning, or higher risk-return profiles) are commonly structured through CKDs, CERPIs, or private vehicles, which allow for greater flexibility, capital calls, and active management.<\/p>\n<p>From a tax perspective, the choice of structure depends not only on the sector and strategy but also on the resulting tax efficiencies. Non-business trusts are typically used for management and lease activities (e.g., residential or hospitality developments). Business activity trusts are generally preferred for the commercial real estate sector, since tax losses may be carried forward to offset taxable income for up to ten fiscal years and, upon termination of the trust, any remaining tax losses are distributed pro rata to the beneficiaries up to the inflation-adjusted amount of their unrecovered contributions. Interest on bank financing may be deducted, provided legal requirements are met. FIBRAs are designed exclusively for real property intended for lease, making them well-suited for core and income-generating strategies in the office, industrial\/logistics, retail, and hospitality sectors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the regulatory framework distinguish between different types of real estate funds (e.g., REITs vs. private real estate funds, development funds vs. income-generating property funds, open-ended vs closed-ended) and, if so, how?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The framework distinguishes between different vehicles, depending on: (a) the market they access (private or public), (b) the nature of the assets being invested in (real estate, shares, partnership interests, or rights), and (c) the applicable tax regime.<\/p>\n<p>In the private sector, ordinary trusts can be structured as co-investment vehicles and issue privately traded Real Estate Participation Certificates (Certificados de Participaci\u00f3n \u2013 \u201cCPIs\u201d), subject to minimal formalities as they are governed solely by the LGTOC. In the capital markets, CBFs take on different names and tax treatments depending on the trust\u2019s investment purpose: \u201cdevelopment\u201d (CKDs), \u201creal estate\u201d (CBFIs, the basis for FIBRAs), and \u201cindexed\u201d (fiduciary ETFs). In this sector, the National Banking and Securities Commission (Comisi\u00f3n Nacional Bancaria y de Valores \u2013 \u201cCNBV\u201d) establishes documentary and corporate governance requirements, as well as operational limits and disclosure obligations for its issuers (trust companies or brokerage firms).<\/p>\n<p>In terms of liquidity and investment horizon, although the LMV and the CUE do not formally use the categories \u201copen-ended\u201d or \u201cclosed-ended,\u201d listed CBFIs (including FIBRAs) typically operate in practice as perpetual vehicles, with secondary liquidity on the stock exchange. In contrast, CKDs are typically structured as closed-ended vehicles, with a defined term and distributions as investments mature. The LFI is the only framework that formally distinguishes between open-ended and closed-ended funds; FICAPs operate in practice as closed-ended vehicles, since the LFI and its implementing rules do not contemplate redemption at Net Asset Value (\u201cNAV\u201d) by the fund.<\/p>\n<p>From a tax perspective, the LISR sets forth different treatments depending on the type of trust. A trust predominantly engaged in passive income activities is treated as fiscally transparent, and each investor pays tax under its own regime, with the trustee withholding 10% on gross rental income. FIBRAs, regulated under the LISR, operate as a tax stimulus and require, among other conditions: (i) the trustee must be a credit institution or brokerage house resident in Mexico; (ii) at least 70% of the trust\u2019s assets must be invested in real estate intended for leasing or in the right to receive lease income; (iii) the real estate must be held for at least four years from acquisition or construction; and (iv) the trustee must distribute at least 95% of the fiscal result of each fiscal year to investors no later than March 15 of the following year. The trustee withholds 30% income tax on the distributed fiscal result, except for exempt investors (e.g., qualifying foreign pension funds); when CBFIs are sold through stock exchanges or equivalent systems, Mexican-resident individuals and foreign residents without a permanent establishment in Mexico are exempt from income tax on the resulting gain. Business activity trusts are taxed similarly to corporations: the trustee determines the taxable base, files monthly returns, and may carry forward tax losses for up to ten fiscal years. Mexican tax law does not differentiate between open-ended and closed-ended funds, although the four-year holding period applicable to FIBRAs effectively imposes a closed-ended discipline on real estate disposals.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the regulatory calculation of leverage apply to alternative investment funds that acquire real estate assets indirectly through non-listed companies? Are there any leverage limits that apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For alternative funds that acquire real estate indirectly through unlisted companies, the determining factor for calculating leverage and applying the leverage limits in Mexico is whether the vehicle is a listed trust issuer. If so, the applicable regulation requires the issuer to measure and disclose, on a consolidated basis, both its leverage and its debt service coverage ratio each quarter in accordance with certain regulatory requirements. The regime of limits and remedies applies regardless of the underlying form of ownership.<\/p>\n<p>In FIBRAs, the general meeting sets the maximum debt limit. For CKDs and CERPIs pursuing credit strategies and taking on additional debt, a cap of 5x the certificate&#8217;s assets\/book value and a minimum debt service coverage ratio of 1.0 apply. Private vehicles that do not access the public market fall outside these regulatory limits and instead operate under contractual discipline and financial covenants.<\/p>\n<p>From a tax perspective, no leverage limit is imposed specifically on alternative investment funds; however, two interest-deduction restrictions under the LISR are relevant: (i) thin capitalization rules, which disallow the deduction of interest on debt with foreign related parties exceeding a 3:1 debt-to-equity ratio; and (ii) the general cap on net interest deductions. Investment trusts are not direct income-tax payers, so these rules must be analyzed in the specific context of each trust; business activity trusts, taxed similarly to corporations, are directly subject to both restrictions. Interest deductions on loans from related parties are also subject to the LISR\u2019s transfer-pricing rules, which require contemporaneous documentation supporting the arm\u2019s-length nature of the financing.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there specific reporting requirements for property-level performance metrics (net operating income, cap rates, occupancy rates)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For FIBRAs and CBFIs, the CUE framework requires robust disclosure of portfolio performance, principally through Exhibit N Bis 3 applicable to real estate trust issuers and the disclosure of their quarterly information. In market practice, and under global accounting standards (International Financial Reporting Standards (\u201cIFRS\u201d) and International Accounting Standards (\u201cIAS\u201d) 40), this disclosure takes the form of metrics such as occupancy, net operating income (\u201cNOI\u201d), and valuation assumptions such as cap rates in notes and opinions. Mexican issuers typically publish these metrics systematically, even though \u201cNOI\u201d and \u201ccap rate\u201d are not listed as standardized fields in the CUE.<\/p>\n<p>For CKDs and CERPIs, the regulatory focus is on investment progress and financial statements, without standardized KPIs per property. For private investment vehicles and FICAPs, there are no public disclosure requirements regarding operational metrics for real estate assets, except as provided for in contracts or dictated by the nature of the indirect investment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are any disclosures required when properties are marked to market versus held at cost?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Mexico, disclosure requirements for \u201cmark-to-market\u201d versus \u201cheld at cost\u201d stem primarily from the accounting standards applicable to each structure rather than from regulation itself.<\/p>\n<p>FIBRAs are subject to periodic disclosure requirements. If a FIBRA adopts the fair value model under IAS 40, it must recognize fair value changes in income and disclose a reconciliation of opening and closing balances (including additions, disposals, and fair value adjustments), the level of support from an independent appraiser, and any significant adjustments to external valuations. IFRS 13 also requires disclosure of the fair value hierarchy, valuation techniques, and\u2014for Level 3 measurements\u2014significant unobservable inputs and the sensitivity of the measurement to changes in those inputs. Under the cost model, IAS 40 requires disclosure of the fair value of the investment property and details on depreciation methods, useful lives, gross amounts, and accumulated depreciation; IFRS 13 requires disclosure of the hierarchy and techniques, but does not require quantifying unobservable inputs.<\/p>\n<p>CKDs and CERPIs typically do not own real estate directly; their NAV and performance depend on the valuation of their investments in companies or projects. Their annual reports must detail valuation methodologies and the appraiser\u2019s independence and, if the issuer prepares statements under IFRS, must include the disclosures required by IFRS 13 (hierarchy, techniques, and Level 3 inputs where applicable), as well as an update to the investment plan.<\/p>\n<p>For private trusts and unlisted companies, disclosure is governed contractually toward co-investors and lenders. When the issuer reports under IFRS, fair value measurement triggers the IFRS 13 disclosures; the cost model still requires disclosing the fair value of the investment property, unless the issuer duly justifies its inability to measure fair value reliably.<\/p>\n<p>Finally, FICAPs report portfolio composition, prices, and financial statements; there is no requirement to disclose cap rates, NOI, or occupancy rates for third-party properties to which they gain access through securities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who can perform the valuation function for real estate funds?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The valuation function varies by vehicle. For CKDs and CERPIs, an independent appraiser with adequate experience and resources must value the instrument and the underlying entities at least once a year and disclose its independence annually in accordance with CUE standards. For FIBRAs and CBFIs, property valuations are reflected in financial statements under IFRS\/NIF and in annual reports; when a specific transaction or event requires pricing, an \u201cindependent expert\u201d intervenes under CUE criteria, typically relying on appraisals or specialized opinions. For CPIs and private trusts, an appraisal determines market value in accordance with the LGTOC; if registered, the appraisals may be issued by credit institutions or valuation institutions under the LMV. Finally, for FICAPs, valuation may be carried out by investment fund share valuation firms or by valuation committees appointed by such firms.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How often must valuations be performed and how does this differ between closed-ended and open-ended real estate funds?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The frequency of valuation varies by vehicle. In private trusts and unlisted companies, the frequency is determined by contract and accounting standards, with no uniform regulatory requirement.<\/p>\n<p>For FIBRAs\/CBFIs, valuation is reflected in financial statements under IFRS\/NIF and in quarterly and annual reports filed under the CUE. Issuers applying the fair value model of IAS 40 must revalue the properties at each reporting date; those applying the cost model must disclose fair value in accordance with IFRS 13. Regardless of market practice, no regulation sets a mandatory frequency for external appraisals. For CKDs and CERPIs, the CUE expressly requires at least an annual independent valuation of the instrument and the underlying companies, in addition to quarterly and annual disclosures under CUE standards.<\/p>\n<p>The distinction between \u201copen-ended\u201d and \u201cclosed-ended\u201d funds is not always clear in the trust-certificate segment of the real estate market. The distinction is sharper for LFI funds: as closed-ended funds, FICAPs must be valued at least quarterly and upon relevant events, whereas open-ended equity or debt funds value and publish prices daily to support liquidity and redemptions at NAV.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the liquidity management tools you would typically expect a manager to deploy for an open-ended real estate fund?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For an open-ended fund in Mexico (structured under the LFI and with primarily indirect real estate exposure), the expected set of liquidity management tools includes, as a regulatory and market standard: maintaining minimum liquid assets and concentration limits; documenting repurchase and liquidation policies and timelines; applying price haircuts in disorderly conditions to mitigate dilution; temporarily suspending redemptions and adjusting dates with regulatory authorization when appropriate; spinning off illiquid assets; conducting redemptions in kind; and, on a prudent basis, drawing on credit lines or short-term debt, all within a robust framework of liquidity risk management and continuous disclosure.\u202fIn contrast, the most commonly used closed-ended real estate vehicles (FIBRAs\/CKDs\/CERPIs\/FICAPs) do not use NAV redemption tools and instead rely on secondary-market liquidity and the investment and divestment discipline of their programs.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any limits on the manager\u2019s ability to restrict redemptions in open ended real estate funds?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Mexican open-ended funds (including those with indirect real estate exposure), the manager may restrict redemptions only as expressly provided in the prospectus and within the LFI\/CNBV framework: any suspension must be extraordinary and temporary; the CNBV may regulate the process and authorize date adjustments in disorderly markets; maximum liquidation periods and minimum liquidity requirements apply; applying spreads requires approved methodologies and controls and must be disclosed without delay; if the investment or redemption regime changes, investors are entitled to 100% redemption at NAV without a spread within the projected timeframe; and if illiquid assets must be isolated, the fund carries out a spin-off subject to caps and safeguards, with the spun-off fund having no redemption obligation until its liquidation. These rules, together with the operator\u2019s fiduciary duties, precisely define the manager\u2019s discretion to restrict redemptions in order to protect the investing public and preserve the fund\u2019s operational stability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are potential tools that a manager may use to manage illiquidity risks regarding the real estate assets of its fund (e.g., credit facilities, partial disposals, NAV financing)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In FIBRAs\/CBFIs, the primary tools are bank financing and asset-backed or fiduciary-rights bonds, term refinancing, asset rotation or sales, and capital increases; all subject to leverage and coverage ratio limits approved by the general meeting and measured in accordance with Exhibit AA, with consolidated quarterly disclosures.\u202fIn CKDs\/CERPIs, illiquidity management relies on capital calls, metrics-based credit (including the 5x cap on credit strategies), and an annual independent valuation that guides ramp-down and divestment decisions.\u202fIn private vehicles, financing secured by pledges or by the assignment of fiduciary rights or shares (including extrajudicial enforcement in guarantee trusts) enables locally viable \u201cNAV financing,\u201d together with partial sales and fiduciary debt certificates for specific funding purposes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any other limitations on a manager\u2019s ability to manage its real estate funds (e.g., geographic diversification requirements, property type concentration limits, leverage restrictions)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In FIBRAs primarily, the manager is constrained by tax regime requirements (70% investment in real estate; four-year hold; 95% distribution) and by the CUE\u2019s governance and prudential indicators (debt limit and coverage ratio set by the general meeting; general meeting and committee approvals for significant and related-party transactions; and a 20% cap on the trust patrimony that may be invested in registered debt securities for credit-strategy CBFIs). No regulation imposes geographic diversification or property type limits, although issuers must disclose concentrations and significant events that increase risk.<\/p>\n<p>For CKDs and CERPIs, no sector or geographic quotas apply, but leverage limits apply when the strategy is credit-based (5x assets\/book value and DSCR \u2265 1.0), together with strict approval thresholds and investment policies. In CERPIs, acquiring listed companies generally requires at least 20% of the capital or co-investments to achieve that threshold.<\/p>\n<p>In private vehicles, contractual freedom, financing, and collateral discipline prevail; there are no regulatory limits on diversification or leverage.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are managers or advisers to real estate funds required to be licensed, authorised or regulated by a regulatory body? And the real estate fund itself?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Managers and advisers of regulated open-ended funds are subject to authorization and supervision: the operating company, the distributor, and the appraiser must hold CNBV licenses, and the fund itself must obtain CNBV authorization for its organization and operation and an approved prospectus.<\/p>\n<p>In FIBRAs and alternative funds (CKDs\/CERPIs), the trustee must be a regulated financial institution. The \u201casset manager\u201d is subject to a governance, disclosure, and liability regime under the CUE and the LMV, including removal by the general meeting and conflict-of-interest controls, but is expressly excluded from the requirement to register as an investment adviser when managing projects, companies, or real estate.<\/p>\n<p>For unlisted private vehicles, the manager does not need a specific prudential license; however, a manager that provides securities advice to the public or engages in discretionary portfolio management must register as an investment adviser and comply with the applicable rules of conduct and supervision.\u202fIn all public market cases, the \u201cfund\u201d or issuer falls under the jurisdiction of the National Securities Registry and the CUE, with the CNBV empowered to authorize offerings, supervise disclosure, and enforce governance and investor protection regulations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there different tiers to regulation applicable to local fund vehicles based on the size of the fund and\/ or the size of the manager?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No regulatory \u201ctiers\u201d based on the size of the fund or the manager apply to FIBRAs\/CBFIs or to CKDs\/CERPIs; the prudential and governance parameters follow a single methodology and uniform relative thresholds that apply equally to large and medium-sized issuers. The only observable distinctions relate to the type of offering (general public vs. restricted), the type of vehicle, and materiality thresholds for governance and disclosure; no regime is more lenient or stricter based on the size of the fund or the manager.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the appointment of a property and asset manager typically work for a real estate fund? Are there any regulatory requirements to be aware of?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In FIBRAs, CKDs, and CERPIs, the \u201casset manager\u201d is appointed by contract subject to the LMV and the CUE: the general meeting and the technical committee set its powers, compensation, grounds for termination, and removal; related-party transactions require approval by an independent majority and must be conducted at market price; and property managers or operators are integrated into the periodic reporting process with operational responsibility.\u202fIn funds regulated by the LFI, including FICAPs, asset management is carried out by a CNBV-authorized operator; outsourcing of management requires prior notice, approval by the board with a majority of independent members, and specific guidelines and obligations.<\/p>\n<p>In private vehicles, the appointment is contractual; no specific prudential license is required for the manager unless they provide investment advisory or portfolio management services to the public, in which case the investment advisor regime applies. The fiduciary infrastructure and the common representative add layers of governance when there is an issuance.<\/p>\n<p>Regarding disclosure and events, relevant substitutions and changes to the administrator\/operator must be reported; modifications to the administrator\u2019s compensation require a meeting and disclosure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What service providers are required by applicable law and regulation for real estate funds (e.g., property valuers, asset managers, property managers, custodians)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For listed real estate trust issuers (FIBRAs\/CBFIs, CKDs, and CERPIs), regulation mandates the following service providers: a financial trustee (bank, brokerage firm, or operator), a common representative, an external auditor, and a securities depository. In addition, the asset manager and the asset operator must be integrated into the governance and reporting chain. For CKDs and CERPIs, an independent valuation of the instrument and the underlying companies is mandatory at least once a year. For funds regulated by the LFI (including FICAPs), the CNBV-authorized service provider framework (operator, distributor, equity appraiser, price provider, depositary\/custodian, and auditor) supports price calculation, operational liquidity, and the ongoing transparency required by the prospectus.<\/p>\n<p>In private vehicles, only the financial trustee is retained in ordinary trusts, with contractual flexibility remaining for property\/asset management. However, when conducting a public offering (of shares, partnership interests, or CPIs), stock market standards must be incorporated to ensure investor protection and disclosure consistent with the type of vehicle and the placement method.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there local residence or other local qualification or substance requirements for the real estate investment fund and\/or the fund manager and\/or the property and asset manager to the fund?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Listed trust issuers and their certificates (FIBRAs\/CBFIs, CKDs, and CERPIs) must be structured through Mexican trusts, with trustees that are banks, brokerage firms, or operating companies resident and authorized in Mexico. This imposes a local \u201csubstance\u201d requirement on the vehicle and its trustee. No specific residency requirement applies to the asset or property manager, although the applicable governance, disclosure, and liability regime requires compliance capacity in Mexico.<\/p>\n<p>In funds regulated by the LFI (including FICAPs), the fund and its operator, distributor, and appraiser must all be authorized by the CNBV and operate as Mexican entities. Certain services (such as custody and securities administration) may nonetheless be contracted with foreign entities under specific conditions and subject to public disclosure.\u202fIn private vehicles, no general residency requirement applies to the manager; if the vehicle transitions to a public offering, the requirements for local trustee presence and market infrastructure apply.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What rules apply to foreign managers or advisers wishing to manage, advise, or otherwise operate funds domiciled in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The rules vary depending on the vehicle and the foreign manager\u2019s degree of presence in Mexico. For funds regulated by the LFI, only an authorized Mexican operator may perform the management function; the operator may outsource administration to foreign entities subject to 30 days\u2019 prior notice to the CNBV, approval by a board of directors with a majority of independent members, and applicable control and oversight policies, with regulatory responsibility remaining with the local operator.<\/p>\n<p>In FIBRAs, CKDs, and CERPIs, the issuing trustee must be a Mexican financial institution; the asset manager may be foreign and is subject to the CUE\u2019s governance and disclosure rules, with no obligation to register as an investment adviser. The manager\u2019s identity, business, and compensation must be disclosed in prospectuses and annual reports.<\/p>\n<p>Finally, foreign advisers are not required to register if they have no presence in Mexico and do not engage in marketing activities there; if they do have a presence, they must register as \u201cinvestment advisers\u201d and comply with the applicable organizational and conduct requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the typical level of management fee paid for real estate funds? Does it vary by sector or investment strategy (core, value-add, opportunistic)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Mexico, fees vary by vehicle, operator, and investment strategy, and are typically structured as a percentage of assets, capital, or revenue, with potential performance incentives.<\/p>\n<p>Variation across real estate sectors is limited; in practice, differences stem more from strategy (core, value-add, or opportunistic) and the manager\u2019s profile than from the type of asset. In practice, strategies with higher risk or a development component tend to include more complex structures with variable components, while stabilized strategies use simpler structures based on assets or revenue.<\/p>\n<p>No regulatory caps apply to fees; however, their definition and modification are subject to disclosure requirements and to approval by the general meeting or committees, with the participation of independent members and, where applicable, the support of expert opinions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is a typical carried interest type in real estate funds? Is there a common approach to hurdle\/preferred return, catch-up provision, or other condition based on property-specific benchmarks? If so, please explain.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In practice, preferred return and carry levels in the Mexican market vary significantly from issue to issue, depending on the strategy, risk profile, and investors&#8217; bargaining power\u2014particularly for CKDs and CERPIs. As a reference, relatively standardized structures typically feature a carry of around 20% for the manager, subject to a preferred return of 8%\u201310% annually, followed by a catch-up tranche and, thereafter, an 80\/20 split of the surplus in favor of investors and the manager. These ranges are merely indicative, and in certain segments a trend toward compressing carry below 20% has been observed under specific market conditions.<\/p>\n<p>In FIBRAs\/CBFIs, a classic carry is uncommon; fees based on assets under management (AUM), asset value, or income predominate, and when incentives exist, they are structured as performance fees, subject to disclosure and governance controls, or are excluded.<\/p>\n<p>In open-end funds under the LFI, variable fees are permissible, provided that the benchmark and methodology are described in the prospectus, and they function more as portfolio performance fees than as real estate carry. Consequently, the use of carry is concentrated in development or value-add strategies via CKDs\/CERPIs, while vehicles focused on stable income, such as FIBRAs, favor more limited fee structures.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are typical management fees for real estate funds paid during and after the investment period, and how do these vary (if at all) in terms of the basis of the fee?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Management fee levels and bases depend on the vehicle and the investment cycle. In FIBRAs, ongoing fees based on collected rents, property values, or tiered basis points on Assets Under Management predominate, with or without incentives and subject to disclosure and corporate approval. In closed-ended development and value-add vehicles, the typical basis shifts from committed capital during the investment period to invested capital thereafter, with additional operating fees for development, leasing, and asset management.\u202fIn open-ended funds (LFI), the prospectus sets and discloses the manager\u2019s fee, usually as a percentage of NAV and\/or as an \u201cexpense ratio,\u201d subject to CNBV approval and oversight. In all cases, the regulatory focus is on the transparency and governance of fees rather than their absolute amount.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any particular requests investors in real estate funds are likely to ask for in their side letters?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For public issuers (FIBRAs\/CBFIs and CKDs\/CERPIs), equal rights per series and proportional distributions apply; accordingly, \u201cside letters\u201d granting unique economic or voting advantages outside the offering documents are not viable. Disclosed voting agreements are, however, permissible, and restricted offerings may include enhanced information rights in accordance with the CUE.\u202fIn open-ended funds (LFI), the regulations require non-discrimination; any differentiation must be channeled through series or classes specified in the prospectus, and discounts or rebates on distributions must be disclosed and applied without discrimination within each series.\u202fIn private vehicles (trusts and unlisted partnerships), \u201cside letters\u201d typically cover enhanced reporting, MFN and fee adjustments, governance rights, co-investment and exculpatory clauses, and transferability rules, while respecting the enforceability of shareholder meetings and the powers of the common representative, as well as economic proportionality among holders in the event of an issuance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can real estate funds be marketed to non-professional (retail) investors in your jurisdiction? If so, is this a particular form of real estate fund and what are the regulatory requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Real estate exposure may be marketed to non-professional investors in Mexico, primarily through FIBRAs\/CBFIs placed by public offering and listed on the stock exchange, subject to the disclosure, corporate governance, and equal treatment requirements set out in the LMV and the CUE; in these cases, placement intermediaries may distribute the securities to the general investing public. Retail investors may also acquire listed index-tracking instruments (ETFs) that replicate indices (including those with real estate components), provided the shares are registered and listed and subject to their own disclosure and operating rules. In addition, regulated investment funds may be offered to retail investors to provide indirect exposure to the real estate sector (for example, through CBFIs or other securities), subject to requirements on prospectuses, key information documents, advertising rules, and investor profile segmentation.<\/p>\n<p>In contrast, CERPIs may only be offered through a restricted public offering to institutional and qualified investors. Meanwhile, CKDs, although legally eligible for listing and market placement, are in practice targeted at sophisticated investors with enhanced disclosure and governance obligations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there additional restrictions on marketing real estate funds to government entities or similar investors (e.g. sovereign wealth funds) or pension funds or insurance company investors, given their typical allocation targets for real estate?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Mexico, a real estate vehicle\u2019s \u201cmarketability\u201d to these investors does not depend on additional advertising restrictions. It depends on the investors\u2019 eligibility and on the ability of the issuer and its intermediaries to comply with the prudential and disclosure frameworks applicable to pension funds and insurers, and to structure the offering (broad or restricted public offering) under the CUE when the target audience is institutional.<\/p>\n<p>The limitations stem from the prudential regime of the regulated investors themselves. Pension Fund Administrators (Administradoras de Fondos para el Retiro \u2013 \u201cAfores\u201d) invest through Specialized Pension Fund Investment Companies (Sociedades de Inversi\u00f3n Especializadas en Fondos para el Retiro \u2013 \u201cSiefores\u201d) under parameters set by the National Commission for the Pension Savings System (Comisi\u00f3n Nacional del Sistema de Ahorro para el Retiro \u2013 \u201cCONSAR\u201d). These parameters require eligibility of the structured instrument, valuation methodologies using price providers or valuation firms, valuation contingency criteria and procedures, adequate custody, and integration into the Afores\u2019 risk management manuals.<\/p>\n<p>For their part, insurers must comply with the Insurance and Surety Institutions Law (Ley de Instituciones de Seguros y de Fianzas) and the Sole Insurance and Surety Regulation (Circular \u00danica de Seguros y Fianzas) with concentration limits, public offering requirements, and, where applicable, minimum ratings, in addition to monthly reporting obligations from the vehicle to the institution. For sovereign wealth funds or other foreign government entities, there is also no special disclosure regime distinct from the general one; public or restricted offering procedures and applicable disclosure standards apply, with any additional specific requirements arising from their own mandates and contractual negotiations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What sustainability due diligence or disclosure requirements and ongoing compliance obligations apply to managers of real estate funds?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>ESG obligations applicable to real estate fund managers in Mexico operate on four levels.<\/p>\n<p>&nbsp;<\/p>\n<p>First, listed issuers (FIBRAs\/CBFIs, CKDs, and CERPIs) must, under the January 28, 2025 amendment to the CUE, file a stand-alone annual sustainability report aligned with IFRS S1 and IFRS S2, mandatory from 2026 (FY 2025), with phased external assurance (optional in 2026, limited in 2027, and reasonable from 2028).<\/p>\n<p>Second, vehicles reporting under NIF (including private trusts, holdco\/propco structures, unlisted FICAPs, and Mexican subsidiaries of foreign sponsors) must comply with CINIF\u2019s NIS A-1 and NIS B-1 (effective for fiscal years beginning on or after January 1, 2025), disclosing 30 Basic Sustainability Indicators (\u201cIBSO\u201d) (21 quantitative and 9 qualitative) in the notes to the audited financial statements without a materiality filter, with transitional relief for Scope 3 emissions and the \u201cSustainable Investment\u201d indicator until the 2026 report; per IMCP, the IBSO are treated as \u201cother information\u201d not subject to mandatory audit, although voluntary assurance is available.<\/p>\n<p>Third, asset-level due diligence is anchored in: (i) the Environmental Impact Authorization; (ii) the Authorization for Change of Land Use in Forest Areas (ACUSTF); and (iii) compliance with municipal, state, and federal land-use planning instruments (urban development programs, ecological land-use programs, and Protected Natural Areas), which determine permitted, conditional, or prohibited uses. In Mexico, certain infrastructure, industrial, or natural resource development projects may be subject to indigenous consultation processes when they have the potential to affect indigenous territories, resources, ways of life, or collective rights. Voluntary alignment with Mexico\u2019s Sustainable Taxonomy is increasingly relevant in covered sectors, notably construction.<\/p>\n<p>Fourth, the prudential regime of institutional investors is becoming a binding ESG driver: recent amendments to the applicable regulation require Afores to monitor non-financial sustainability information of their portfolios and to incorporate ESG decision-making and risk-management policies into the selection of structured instruments, infrastructure and real estate trusts, and securitized instruments; open-ended funds remain free of a prescriptive ESG regime, but their prospectus and risk-management requirements enable the integration and communication of sustainability approaches.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any mandatory energy efficiency reporting or carbon footprint disclosure requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Mandatory energy efficiency and carbon footprint disclosures vary by vehicle, accounting regime, and underlying asset, but operate on four converging tracks.<\/p>\n<p>First, listed issuers (FIBRAs\/CBFIs, CKDs, and CERPIs) must file sustainability information aligned with IFRS S1 and IFRS S2; IFRS S2 specifically requires disclosure of absolute gross GHG emissions (Scopes 1, 2, and 3), exposure to physical and transition climate risks and opportunities, capital deployment, internal carbon prices, and the linkage of executive remuneration to climate considerations, with phased external assurance (optional in 2026, limited in 2027, reasonable from 2028).<\/p>\n<p>Second, entities reporting under NIF (including private vehicles, unlisted FICAPs, holdcos\/propcos, and Mexican subsidiaries of foreign sponsors) must, under CINIF\u2019s NIS B-1 (effective for fiscal years beginning on or after January 1, 2025), disclose in the notes to the audited financial statements, without a materiality filter and reporting both absolute and relative values, the following IBSO: A.1 Scope 1 GHG emissions, A.2 Scope 2 GHG emissions, A.3 Scope 3 GHG emissions (deferrable until the 2026 report), A.4 energy consumption, and A.5 renewable energy consumption; per IMCP, these IBSO are treated as \u201cother information\u201d not subject to mandatory audit.<\/p>\n<p>Third, at the operational level and regardless of stock-market status, facilities emitting more than 25,000 metric tons of CO\u2082e per year must register and annually report their emissions to the National Emissions Registry using approved methodologies, verified by an accredited third party at least every three years; Mexican Official Standards for energy efficiency (e.g., lighting and thermal envelope) apply to buildings and require technical verification by Verification Units (\u201cUVIE\u201d) and periodic reports to the National Commission for the Efficient Use of Energy (\u201cCONUEE\u201d), although these standards do not in themselves involve carbon footprint measurement.<\/p>\n<p>Fourth, the Energy Planning and Transition Law (2025) introduces the category of High-Consumption Users (\u201cUPAC\u201d) and empowers CONUEE to request information, order verifications, and impose sanctions; UPAC must report on efficiency measures and implement energy management systems. Funds established under the LFI are not subject to a prescriptive ESG regime, but their disclosure and risk-management obligations permit\u2014and in certain cases require\u2014the incorporation of energy or climate metrics consistent with their strategy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">6700<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/141230","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=141230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}