industrial Market News: Spanish Real Estate Intelligence

Aguirre Newman: Logistics Demand Soars By 23% In Madrid & Barcelona

17 October 2017 - Eje Prime

Demand for logistics space in Madrid and Barcelona is on the rise. During the first three quarters of 2017, 929,698 m2 of logistics space was leased, which represented an increase of 22.6% compared to the volume leased during the same period in 2016, according to data released by the Logistics Market Monitor for Madrid and Barcelona 2017, compiled by the real estate consultancy firm Aguirre Newman.

The volume of investment reached €600 million (during the 9 months to September 2017), which accounts for 76% of the total recorded during the whole of last year. That figure, in turn, represented a historical maximum in terms of investment volumes in Spain.

“The high level of investment activity in logistics assets that began four years ago continued during the third quarter of 2017. It was boosted by factors such as the consolidation of economic growth, the gradual improvement in consumption by households, rising rental prices in the main markets and an improvement in financing conditions”, say sources at the consultancy firm.

By market, demand for logistics space in Madrid during the third quarter of 2017 amounted to 226,757 m2, which took the total cumulative volume of space leased so far in 2017 to 614,070 m2, up by 52% compared to the same period last year.

The most significant operation, in terms of the volume of space leased during the third quarter, was closed in Illescas (Toledo), where a turnkey operation was signed involving a space measuring 103,000m2. It was followed by another operation in Meco involving a logistics space measuring 59,914 m2.

In terms of rental prices, the maximum reached has been €4.85/m2/month, as a result of an operation closed in the Corredor del Henares, specifically, in San Fernando.

“Activity in the market for land with logistics and industrial use has grown considerably with respect to previous quarters, given that seven operations have been signed, involving a combined surface area of 379,096 m2 (…)”, say sources at the consultancy firm.

In Barcelona, 91,406 m2 of logistics space was leased during the third quarter, which represented a slight decrease (of 9%) compared to the same period in 2016. Meanwhile, the total cumulative space leased during the first nine months of the year amounted to 315,628 m2.

Prime rental prices in the Catalan capital continue to range between €5.75/m2/month and €6.75/m2/month. Nevertheless, Aguirre Newman’s report highlights that one operation was closed in the Zona Franca Consortium for a rental price that exceeds the prime rent.

Original story: Eje Prime

Translation: Carmel Drake

Lar To Build Its 6th Spanish Logistics Park In Cheste (Valencia)

17 October 2017 - Eje Prime

Lar España is putting its foot down on the accelerator. The Socimi is finalising plans for a new logistics park in Cheste (Valencia), the sixth industrial project to be undertaken by the firm in Spain. The firm has already created a company to manage the complex, which spans a leasable surface area of 122,000 m2. Now, planning permission just needs to be granted for the site so that the construction work can begin.

The project has already been granted environmental approval, according to El Español, and will be located in one of the most important enclaves for the logistics sector in Valencia, a short distance from the major distribution centre in Ribaroja on the Ciudad Circuito industrial estate. The forecast investment in this new logistics park will amount to almost €16 million.

In addition to logistics activities, the site will also be kitted out for cross-docking and will allow the entry of mega-trucks.

The company created for this asset is called Lar España Inversión Logísitic VI, which will be led by Miguel Pereda, a proprietary director of the Socimi, whilst Jon Armentia, Corporate Director of Lar España, will perform the role of Vice-President.

The project in Cheste represents the company’s sixth logistics investment, given that it already owns one complex in Valencia, in Almussafes, and four in Guadalajara (Alovera), worth €77 million in total.

In Spain, 80,000 m2 of logistics space was leased during the third quarter of 2017, down by 29% compared to the previous quarter (112,000 m2). In terms of the cumulative figure for the half year, more than 317,000 m2 of space was leased, down by 57% compared to the same period last year.

Original story: Eje Prime

Translation: Carmel Drake

Ibercaja Sells 450-Space Parking Lot In Zaragoza To Indigo

13 October 2017 - Inmodiario

JLL, the professional services firm and investment manager specialising in the real estate sector, has advised Ibercaja on the sale of the San Ignacio de Loyola parking lot, located in the centre of Zaragoza, The purchaser has been the parking lot manager Indigo, the global mobility leader, which has a presence in 16 countries, including Spain.

The asset has a surface area of almost 20,000 m2, distributed over 500 parking spaces in total, of which 450 have been included in the transaction perimeter; the remaining 50 spaces will continue to be owned by Ibercaja.

The parking lot is prized due to its excellent location, in the heart of Zaragoza, between Calle San Ignacio de Loyola and Paseo de la Constitución, next to El Corte Inglés and close to Plaza Paraíso, an important transport hub in the city. Similarly, the area stands out because it is home to a large number of homes, as well as several major commercial and office spaces.

For Loïc Delcroix, Indigo’s Director General in Spain and Director in Europe: “This significant operation fits perfectly into our expansion and growth strategy in Spain. (…). The operation also serves to reinforce our position as one of the main mobility players in the country”.

For Ibercaja, this operation comes in response to the objective to divest non-strategic assets and, in this way, focus all of its efforts, media and resources on boosting the banking business and implementing the digital transformation, whereby fulfilling the route map established for the strategic cycle 2015-2016.

In the words of Nick Wride, Director of Alternative Assets at JLL, this operation “is another example of the great interest that exists in investing in alternative real estate assets in Spain, a market with enormous potential that will continue to grow at a rapid pace over the next few years”.

Original story: Inmodiario

Translation: Carmel Drake