Investors May Find Lots To Like In Mexico's FIBRA E

Law360, New York (October 14, 2015, 10:53 AM EDT) -- On Oct. 1, 2015, new tax rules promulgated by Mexico's Finance Ministry take effect to govern a new form of investment vehicle, the FIBRA E. The FIBRA E is designed for tax-efficient investments in developed energy and infrastructure assets. From the perspective of international investors, this new investment vehicle combines certain elements of the Mexican version of a real estate investment trust, or REIT, known as a FIBRA, which became popular in Mexico over the last four years, and the U.S.-style master limited partnership, or MLP, structure, that has been used for decades to foster investment primarily in the energy sector. Since U.S. MLP investors are the most likely to be interested in this new investment vehicle, this article examines the differences between MLPs and FIBRA Es....

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