ICC Sells a Logistics Platform in Madrid Spanning 52,000 m2 to DWS

The property developer has sold a 52,000 square metre logistics platform located in the Madrilenian town of Meco to DWS. The asset is ready for immediate occupation.

The property developer ICC has sold a logistics platform spanning 52,000 square metres in the town of Meco (Madrid) to DWS. This transaction is the second operation that the fund has completed following the sale of the Torrejón Casablanca platform last year.

The asset is located on the main logistics thoroughfare in Madrid, the A-2 highway, and has direct access to the R2 highway. In addition, it is available for immediate occupation and its technical characteristics can be adapted for e-commerce, distribution or logistics.

Read the full article in Spanish.

Colonial Sells All of its Logistics Assets to Prologis for €164 Million

The Socimi has sold the rest of the logistics assets included in the agreement signed in 2019 with the US firm. Prologis will disburse 164 million for the seven developments, which together span 159,000 square metres.

The Socimi Colonial has sold all the logistics assets that it still had in its portfolio to Prologis. The American giant has decided to exercise the purchase option that was agreed in August last year with the company led by Pere Viñolas to obtain three logistics assets spanning 100,000 square metres, for which it will pay 164 million euros.

The sale follows the deal signed in August 2019, when Prologis and Colonial reached an agreement regarding the acquisition of 14 logistics properties spanning almost 414,000 square metres, as reported by the Socimi.

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Panattoni Buys 57,000 m2 of Land from Gilsa to Promote a Logistics Park in Vitoria

The logistics developer Panattoni has signed an agreement with Gasteizko Industria Lurra (Gilsa) for the purchase of two plots of land spanning 57,000 m2.

The logistics market is continuing to generate good news for the real estate market. Panattoni is planning to develop a logistics park comprising two state-of-the-art multi-client warehouses on these plots, which are located on the Jundiz industrial estate in Vitoria.

The two buildings, which span 19,000 m2 and 13,000 m2, respectively, will be designed as distribution and storage platforms, in what is expected to be a benchmark logistics park for distribution throughout the Basque Country, as well as neighbouring regions and Southern France. The operation has been advised by the consultancy Busenver and the commercialisation of the park has been entrusted to CBRE and Ucieza Servicios Inmobiliarios.

Read the full article in Spanish.

Airbus Sells its HQ in Madrid to Hines for €29 Million

The fund Hines Global Income Trust (Hines Global) has completed its first operation in the office sector with the purchase of Airbus’s headquarters in Madrid where the aerospace giant will continue as the tenant.

Transactions seem to be returning to the office sector in Spain on the first Monday in more than three months that the country is operating at full capacity after the State of Emergency came to an end. The fund Hines Global Income Trust, Inc. (Hines Global) owned by Hines has acquired the industrial and office complex in Madrid through a sale and leaseback transaction with the aerospace company.

The transaction, which represents Hines’s first foray into the Spanish office market, amounted to 29.2 million euros. The complex, which comprises six office and industrial buildings, has been fully leased to Airbus for six years.

Read the full article in Spanish.

Segro Will Invest €600 Million in Logistics Assets in Spain

The British firm is looking for prime last-mile locations in Barcelona and Madrid, where it plans to invest 600 million euros over five years.

The increase in demand for e-commerce during lockdown has highlighted the need for logistics spaces in the market. To this end, the British Socimi Segro is planning to invest 600 million euros over the next five years in last mile logistics assets located in the prime areas of the first ring-roads around Barcelona and Madrid, according to EjePrime.

In addition to assets destined for the last mile, the company is focusing its efforts on the entire urban distribution chain, including platforms for reverse logistics and cross-docking.

Investment and Leasing in the Logistics Sector are Growing at Double Digit Rates in Spain

Investment in logistics assets amounted to more than €210 million during the first quarter of 2020, whereby exceeding the average recorded during the same period over the last ten years, according to Knight Frank.

The logistics sector has continued to remain active since the start of the State of Emergency due to the pandemic. During the first three months of the year in Madrid, almost 120,000 square metres of space was leased, up by 18% compared to the same period in 2019. Meanwhile, in Barcelona, 105,000 square metres of logistics space was leased, according to the consultancy firm Knight Frank.

At the beginning of the year, operators were already leasing more space. During the first three months of 2020, prime rents remained stable in Madrid and Barcelona, as did the availability rate, which revealed a scarce supply in the main logistics nuclei, of 6% and 3.5%, respectively.

Realterm Enters Spain with the Purchase of a Logistics Warehouse in Barcelona

Realterm Logistics, a US investment group specialising in logistics properties in the United States, Canada and India, has arrived in Spain with the acquisition of its first warehouse in the town of Palau de Plegamans (Barcelona).

Realterm Logistics, a US investment group specialising in logistics properties in the United States, Canada and India, has arrived in Spain with the acquisition of its first warehouse in the town of Palau de Plegamans (Barcelona). The operation, advised by Savills Aguirre Newman, demonstrates the strength of the Catalan logistics market despite the current health crisis generated by Covid-19.

The property is a cross-dock logistics warehouse with a constructed surface area of ​​6,578 square metres on a plot measuring 14,160 square metres. It is located in one of the most strategic municipalities for the distribution sector due to its excellent communications including the airport (43 km) and the port of Barcelona (30 km) and connections with the city, which is just 25 minutes away. The warehouse is currently occupied by a transport company.

The 2008 Crash Lasted 7 Years and Industrial Property Prices Fell by 40%: What will Happen in this Crisis?

By last year, industrial assets had recovered only 17.5% of the value that they lost during the 2008 real estate crash, after dipping to minimum levels in 2014. According to the College of Registrars, the average transaction price was €527/m2 at the end of 2019.

By last year, industrial assets had recovered only 17.5% of the value that they lost during the 2008 real estate crash, after dipping to minimum levels in 2014. According to the College of Registrars, the average transaction price was €527/m2 at the end of 2019.

Like other asset segments, the 2008 financial and real estate crisis hit the industrial market hard. The average transaction price of industrial assets went from €792/m2 to €471/m2, whereby losing 40.5% of their value.

The decrease in prices lasted 7 years, from their peak in the fourth quarter of 2007, to when they bottomed out in the third quarter of 2014. “From that moment, transaction values ​​remained stable for two and a half years, until in the second quarter of 2017, when they began to rise slowly at a rate of between 5% and 6% year-on-year,” says Antonio Ramudo, Data Scientist at Brainsre.

Thus, by the end of 2019, according to the Registrars, with respect to the minimum levels reached in 2014, only 17.5% of the value lost during the crisis had been recovered, with an average price of €527/m2. The current crisis is showing signs of exceptional severity throughout the world, but it is true that the industrial segment is being hit less hard thanks to the dynamism of e-commerce during this time of lockdown.

Variation in prices

The autonomous regions with the most expensive industrial products are also those that suffered the greatest decreases in absolute values. As such, the gap between the maximum prices of 2008-2009 and the minimum prices reached after the fall was greater.

In this way, the regions with the highest average transaction value at present are the Balearic Islands (€1,513/m2), the Community of Madrid (€1,371/m2), País Vasco (€1,263/m2), the Canary Islands (€1,190/m2) and Cataluña (€1,111/m2).

They represent the three most important industrial centres in the country plus the islands, which due to the scarcity of this type of product tend to have more expensive prices. All regions are currently well below the maximum values ​​they reached before the bubble burst in 2008.

Impact of the fall and recovery

With a 61% loss in value, the Canary Islands was the region that suffered the largest drop in prices during the last crisis. Aragón, Cantabria, Galicia and the Balearic Islands were the other autonomous regions that suffered the greatest price decreases, with more than 55% being knocked off their value”, says Antonio Ramudo.

Pontevedra was the province whose prices suffered the most as a result of the 2008 crisis, with a decrease of 70%, from €809/m2 in the third quarter of 2008 to €243 euros/m2 in the first quarter of 2014. Many industrial estates along the Vigo – O Porriño axis witnessed that fall, which lasted for more than 5 years. Huesca was another province that suffered badly during the previous crisis, and with minimum and maximum prices similar to those of Pontevedra, it suffered a 69% decline in transaction values.

50% decreases in Madrid and Cataluña

Nor were the large capitals spared from the crisis. Prices in Madrid fell by 50%, in Barcelona by 52% and Sevilla, which suffered the most, by 66%.

After the 2008 crisis, “36 of the 52 provinces that make up Spain saw a decrease in their average transaction prices of more than 50%. Extremadura was the autonomous region that got off the lightest, although transaction values there still fell by 40%. Nevertheless, it is worth noting that it has always been the region with the lowest prices, so the margin for loss was also lower”, says the Data Scientist.

And amongst the provinces, those that fell by the least were the ones that reached the lowest maximum prices, and therefore had the least to lose: Jaén, Granada, Cáceres, Albacete and Palencia all suffered decreases of less than 40%.

“It is interesting to see also how the various regions have been recovering after leaving behind the crisis of 2008. The islands are the regions that have recovered the best thanks in part to the shortage of product there. In the Balearic Islands and the Canary Islands, 27% and 30% of the value lost has been recovered, respectively”, says Ramudo.

Recovery

Murcia is the mainland region where prices have recovered the most, with 28% of the value recovered with respect to their maximum prices. Madrid has recovered by 22% and Barcelona by 11%. Up to 21 provinces have recovered by less than 20%.

Some regions have recovered almost none of their value: Castilla-La Mancha is currently at values ​​close to the minimums reached in 2015, and prices in Castilla y León are now the lowest they have been for the last 15 years.

“In general, it could be said that since the falls after the crisis slowed down in 2014 and 2015, transaction values ​​have remained fairly stable in almost all regions. Although, there has been some slight price growth since 2017 in places with more demand, thanks in part to the boom in the logistics segment, a leading product in the sector in recent years”, concludes the analyst.

Duration of the fall

Unlike the coronavirus crisis, the 2008 crisis reached different regions in Spain at different times; maximum prices were reached in Cataluña, Aragón, Castilla-La Mancha and Castilla y León in 2007, with the Aragonese region peaking first, in the first quarter of 2007, before starting a prolonged 10-year price drop.

Most regions began to register price decreases between 2008 and 2009, with the tardiest ones, Galicia and País Vasco, seeing their prices fall in 2010. Extremadura was the territory where the recovery after the crisis began first, since during the third quarter of 2012, after three years of decline, prices there bottomed out and began to rise. Prices in the Balearic Islands and La Rioja bottomed out in 2013, and in the rest of the regions between 2014 and 2015.

If we talk about the duration of this crisis, from the beginning and until the end of the price decreases, we see significant asymmetry between regions, from the shortest, less than 4 years, in Extremadura, Balearic Islands, La Rioja and Galicia, to the longest, 8 years, in Andalucía and, 10 years, in Aragon.

Madrid and the País Vasco, regions with important industrial centres, suffered falls that lasted 5 years, while Cataluña took almost 7 years to stop its fall.

The end of 2019

The provinces that closed last year (2019) with the highest average transaction values were the Balearic Islands (€909/m2, although that figure represents a recovery of only 7%), Bizkaia (€827/m2), Madrid (€837/m2) and Santa Cruz de Tenerife (€773/m2).

“The reason why these provinces recorded the highest average transaction values is due to factors such as scarcity and the limited nature of the industrial product, such as in the Balearic and Canary Islands, the long industrial history and constant demand in País Vasco and the importance of Madrid as a logistics centre”, describes Ramudo.

By contrast, the provinces that ended 2019 with the lowest average transaction values were Cáceres (€252/m2), Ciudad Real (€260/m2), Jaén (€261/m2) and Palencia (€262/m2). The lack of demand and their isolation, since they are located far away from the major industrial centres, make industrial assets unattractive products in these provinces.

Gazeley Finalises the Construction of a Warehouse Spanning 37,000 sqm in Toledo

The G-Park Illescas platform has been designed to accommodate the activity of logistics, e-commerce and distribution companies.

The property developer Gazeley has completed the construction of a 37,000-square-metre industrial warehouse in Illescas (Toledo), which is available for immediate occupation. The G-Park Illescas platform has been designed to house the activity of logistics, e-commerce and distribution companies.

The platform has a free height of 11.7 meters and motion sensors that allow for the remote control of the building. The warehouse also has more than 250 private parking spaces for cars and 20 spaces for trucks. The Director of Gazeley Spain, Oscar Heras, said: “We have made significant progress with the expansion of our portfolio in order to meet the growing demand from logistics customers.”

Segro Closes 4 Operations and Plans to Invest €1 Billion in Spain

The British real estate company is planning to invest €1 billion in the Spanish market over the next few years. It has just closed 4 turnkey logistics operations and pre-rentals in Madrid and Barcelona, spanning 92,000 m2 in total.

The British real estate company Segro, which specialises in the management of logistics assets, is planning to invest €1 billion in the Spanish market over the next few years. It has just closed 4 turnkey logistics operations and pre-rentals in Madrid and Barcelona, spanning 92,000 m2 in total.

The company, which currently has a portfolio worth more than €400 million that spans 440,000 square metres in Spain, wants to increase its investment to €1 billion “in the medium to long-term”, according to the group. Furthermore, its objectives include expanding its portfolio by 200,000 square metres in three years, mainly in the Madrid and Barcelona markets.