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MEXICO CITY - Hon Hai Precision Industry Co., Ltd. announced Tuesday that its subsidiary, FII AMC MEXICO S. DE R.L. DE C.V., has acquired right-of-use assets for a factory building in El Salto, Mexico.
The transaction, approved by Hon Hai’s board of directors on October 14, involves a 22,143.46 square foot facility located in Plataforma Park, Colonia Hacienda Vieja Del Castillo. The total right-of-use asset is valued at $15.89 million, according to the company’s statement.
The lease agreement with INDUSTRIAL BARTOLO, S.A. DE C.V., which Hon Hai confirmed is not a related party, spans 120 months with an average monthly rental price of approximately $7.6 per square foot. The total contract rent and management fee amounts to $20.19 million over the lease period, with a security deposit equivalent to two months’ rent.
Zhan-Mao Real Estate Appraisers Firm assessed the property at $15.95 million, closely aligning with the transaction value. The appraisal was conducted by certified appraiser Tsai, Ming-Hang.
Hon Hai, known internationally as Foxconn, stated in the press release that the acquisition was made for "operational needs." The board of directors unanimously approved the transaction with no dissenting opinions.
The announcement comes as global electronics manufacturers continue to diversify their manufacturing footprint across North America.
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