industrial Market News: Spanish Real Estate Intelligence

Savills Aguirre Newman: Inv't in Logistics Assets Exceeded €1.5bn in 2017

15 February 2018 - Expansión

Real estate investment in logistics assets exceeded €1.5 billion in 2017, up by 86% compared to the previous year. That figure includes the corporate operation involving Logicor.

The boom in e-commerce, combined with their attractive returns, have placed logistics assets in the spotlight for real estate investors. In this way, last year, the purchase of these types of properties reached a record-breaking €1.5 billion, according to the consultancy firm Savills Aguirre Newman.

That disbursement represents an increase of 86% compared to the previous year and is the highest figure ever recorded for these types of properties in the Spanish market. Nevertheless, the amount does include the corporate operation carried out by Blackstone. The US fund divested its logistics subsidiary, owner of 147 million m2 of space across 17 countries (including in Spain) to China Investment for €12.25 billion.

In the last three months of the year alone, investment in these types of assets exceeded €200 million.

Unlike other types of properties, such as offices, interest in these assets extends beyond Madrid and Barcelona. “The consolidation of economic growth and the gradual improvement in the fundamentals of the logistics market (demand, availability and rental prices) has continued to drive investment in the sector, which, due to the shortage of supply in Madrid and Barcelona, has shifted its interest to secondary markets, such as Zaragoza and Valencia”, say sources at the consultancy firm.

The large operations of the year included P3’s purchase of GreenOak’s portfolio for €243 million.

In fact, the high degree of interest has caused many investors to back the purchase of plots of logistics land for their subsequent development. “Operations involving logistics land, for the development of turnkey and at-risk projects, have become one of the cornerstones of the market. The high demand for space, combined with the shortage of finished products suitable for the requirements of specific demand, is generating a lot of interest in this product”, explain sources at Savills Aguirre Newman.

The boom in operations has already had an impact on the returns offered by these types of properties. “The initial rate of return for the most prime assets was below 6%, but during the course of the year, for some specific operations, the rate amounted to 5.5%, which means that the gentle upwards trend already observed in previous years is being maintained”.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Rockspring Leases 29,000 m2 Warehouse in Barcelona to Mercadona

5 February 2018 - Eje Prime

Mercadona is increasing its commitment to the logistics sector. The Valencian food group, which was very active last year, especially in its own autonomous region, has signed a rental agreement with Rockspring to lease a logistics warehouse measuring 29,000 m2 on the outskirts of Barcelona.

Mercadona is going to move into a logistics park in Sant Esteve de Sesrovires that was promoted by the investment fund manager Rockspring and the Goodman group, and which was inaugurated last March.

The asset has granted a Breeam certificate, which guarantees the sustainability of the warehouse and that its construction was undertaken in accordance with respect for the environment. According to Business Inmo, the property will be occupied in its entirety by the Spanish food distribution company.

This operation strengthens the commitment of the company led by Juan Roig to extend and renew its logistics portfolio. A few days ago, the group announced that it is going to invest €80 million on the expansion of its technological centre in Valencia. Also in its home region, last October, Mercadona signed the purchase of the largest plot in Parc Sagunt, after acquiring a logistics space measuring 358,270 m2.

Original story: Eje Prime 

Translation: Carmel Drake

Segro Buys Factory in Mollet del Vallès to Convert into Logistics Hub

5 February 2018 - Press Release

Segro, the British investment fund specialising in the real estate-logistics sector, has acquired a 7-hectare plot in Mollet del Vallès (Barcelona). The site has a privileged location with immediate access to the A-7 (France-Madrid) and the C17, which leads directly to Barcelona, 21km away.

The property is going to be remodelled to provide space (40,000 m2) for urban storage and logistics, and is suitable for a single occupant but could be subdivided into units measuring 6,000 m2 – 7,000 m2. The construction work will begin during the course of 2019.

This acquisition comes soon after Segro’s recent acquisitions in Getafe (Madrid) and Sant Esteve Sesrovires (Barcelona) and further strengthens the firm’s growing presence in Spain, where it now owns nine assets in Madrid and Barcelona.

David Alcázar, Director of Segro Spain adds: “Our priority in Spain, like in other places, is to build modern, high-quality assets, not focusing exclusively on quantity. For that reason, we only choose strategic locations in the most dynamic regions of Spain. Our objective is to create and build innovative, high-quality warehouses for our clients, constructing environmentally responsible Class A buildings for urban distribution and logistics”.

Segro has also been holding conversations with the Town Hall of Mollet del Vallès and the municipal government has expressed its willingness to collaborate in new business ventures such as this one involving Segro, which as the mayor of Mollet, Josep Monràs, confirms “may generate work and offer opportunities to the citizens of Mollet del Vallès”.

Segro focuses on the investment and development of buildings with a long-term perspective, helping to attract business and activity in strategic areas, through its clients that are installed on its sites. It also specialises in the reconversion of industrial opportunities, thanks to its extensive experience in Europe.

About Segro

Segro is a listed British real estate investment company (Socimi) and a market leader in Europe in the management, promotion and construction of logistics and industrial assets. Segro owns and manages a portfolio of properties spanning 6.3 million m2, with a market value of GBP 8.0 billion, offering services to various clients in the logistics and industrial sector. Its parks are located in the main distribution and transport hubs of the countries in which it has a presence. It owns some of the leading logistics parks and transport centres in Europe (...).

Original story: Press Release

Translation: Carmel Drake