Garrick-Aug signs joint venture with Mexican broker

Real Estate Weekly, March 2, 1994

In a move that will advance the plans of U.S. retail and restaurant chains to expand their operations into the Mexican market, Garrick-Aug Associates Store Leasing Inc., of New York, and Invedesa, S.A. de C.V. of Mexico City, have announced the formation of a joint venture.

The agreement, which was formalized in Mexico City last month, will combine the resources of two of North America's largest retail brokerage firms. The enterprise, signed by Charles Aug, chairman of GarrickAug, and Ernesto Gomez, president of Invedesa, follows within months of the passage of the North America Free Trade Agreement.

Aug said, "Our strategic alliance with Invedesa will allow American retailers to enter the enormous Mexican market and expand throughout the market on a very fast track."

Gomez said, "Our 25 years of experience will enable American retail, restaurant and service chains to gain valuable insight into the Mexican market - a market that has been virtually closed until now."

The essential purpose of the venture is to give expansion-minded firms in the U.S. valuable information on where the best retailing opportunities are, including demographics, in major markets such as Mexico City, Guadalajara, Monterrey and Leon. Invedesa already has long-established offices in those cities and is the exclusive leasing agent for 32 shopping centers and more than 10 million square feet in new retail development projects.

Garrick-Aug Associates is one of the premier retail brokerage company in the U.S. that is conducting business globally. It employs 65 retail leasing specialists in the New York metropolitan region alone. The firm represents leading American retail chains, and in some cases, has successfully completed more than 100 store leases for a single chain in the New York region alone. Both firms are fully computerized.

Aug said, "Until now, Mexico was a closed market; completely driven by tariffs. Its rigid regulations allowed very little in the way of retail innovation and enterprise. The 1990s will see a rebirth of the entire Latin American market."

He added, "Mexico is a country with a large population. Mexico City is the largest city in the world with 15 million people. Guadalajara, with five million, is as large as Philadelphia. Combined with its great natural resources and a new, forward thinking government, the economy is poised for tremendous growth."