9 May 2017 – Cadena de Suministro
The Socimi has set itself the objective of generating 20% of its revenues from the logistics sector.
The real estate logistics sector has become one of the key markets for Merlin Properties. Being the largest company in Spain in terms of logistics assets is not sufficient for the Socimi. It has set itself the ambitious objective of doubling its logistics stock to achieve 3,000,000 m2 in assets over the next few years.
This challenge comes in response to a larger goal that forms part of the company’s business plan: it wants the rental income from its logistics assets to account for 20% of its total revenues. Given that the Socimi’s current revenues from rental income amount to around €500 million per annum, the plan means that it will have to generate approximately €100 million from its logistics space.
At least that is according to the CEO of Merlin Properties, Ismael Clemente, speaking during the inauguration of the Cabanillas del Campo platform in Guadalajara, the largest logistics development to have been built in Spain since 2007.
In 2016, the company owned 34 logistics assets, with a surface area of 755,000 m2, which generated rental income of €33 million, which represented 7% of the total rental income for the year. If we add the €7.8 million that will be generated from the rental payments at Cabanillas, the Socimi’s current rental income accounts for around 10% of the total.
Commitment to stay
Clemente highlighted the Socimi’s commitment to stay in the logistics market, which allows it to offer “greater security” to its tenants by establishing “long-lasting relationships” and by “tailoring its facilities to suit them”. Since we have “no intention of rotating these assets”, the Socimi is able to commit itself to its clients “as much as necessary”.
In a statement to cadenadesuministro.es, the CEO said that the 3,000,000 m2 of logistics assets, that the Socimi wants, represents a “viable and feasible” objective. The large portfolio of land that the company owns in areas with high levels of logistics activity in Sevilla and Barcelona, together with land in Lisbon, will facilitate the achievement of this objective.
325,000 m2 under development
For the time being, the Socimi has 1,656,000 m2 of logistics space on the Iberian Peninsula, of which 921,000 m2 relate to own assets, 414,000 m2 correspond to its stake in the ZAL de Barcelona and 325,000 m2 is under development. The Socimi also owns a portfolio of land amounting to 880,000 m2.
All of the warehouses that are currently under development are located in the Community of Madrid, in Pinto and Gavilanes, in the A-4 Corredor and in the logistics areas of Meco, Azuqueca and San Fernando, in the heart of the Corredor del Henares.
Original story: Cadena de Suministro
Translation: Carmel Drake