Income Pool: a Strategy to Protect Value and Avoid Real Estate Cannibalization

In the real estate sector, the traditional model of individual sales of units for asset purposes has presented certain structural risks that affect long-term profitability. One of the most significant is the risk of cannibalization between owners, especially evident in shopping malls where each unit was sold independently. This fragmentation tends to generate disorderly price competition, affecting the stability of the project and, in many cases, the capital gains of the entire asset.

Furthermore, in these types of individualized schemes, it's common to encounter problems such as nonpayment of maintenance fees by some owners, which deteriorates the property's overall condition and affects its market value. Income pooling emerges as a strategic alternative to this type of dynamic, aligning investors' interests through proportional participation in a collective return, rather than through individualized and uncoordinated management.

While this model has been successfully implemented in shopping mall developments, it is also highly replicable in other types of assets, such as warehouse subdivisions or industrial warehouses. These types of assets are gaining increasing relevance due to the impact of nearshoring , the expansion of data centers, and the strengthening of logistics corridors in Mexico. Under a revenue pooling scheme , a professionalized operation, centralized management, and a balanced distribution of the flows generated by the entire project can be guaranteed.

To implement this model, a solid legal structure is essential, with a trust being one of the most effective tools. A properly structured trust allows for the regulation of each investor's participation, the establishment of operating rules, the enforcement of obligations, and the clear definition of distribution policies. This formal framework also facilitates compliance with the criteria required by institutional funds and FIBs to consider the acquisition of stabilized assets, which increases the likelihood of an orderly and profitable exit for all investors.

At Newlex, we have experience structuring contracts and trusts designed for income pool models . We have worked with developers, funds, and investment firms, understanding the demands of each player and anticipating the operational and legal challenges of these types of schemes. Our goal is to build legal structures that maximize asset value, protect investors, and generate long-term sustainable projects.