P3 Acquires 11 Logistics Assets From Gore Spain For €243M

10 April 2017 – P3 Press Release

Pan-European logistics property investor-developer P3 has started its latest phase of expansion with the acquisition of a 322,500 mportfolio of 11 logistics and distribution warehouses in Spain from Gore Spain Holdings SOCIMI I, S.A.U. The purchase price was agreed at €243.35 million.

The portfolio includes assets in key strategic logistics locations around Madrid, Zaragoza, Toledo and Guadalajara as well as the coastal cities of Valencia in the east and Biscay (near Bilbao) in the north.

The purchase, which comes shortly after P3 announced a record performance across Europe in 2016, takes P3’s asset base in Spain from just over 70,000 m2 to nearly 400,000 m2 and is one of the largest portfolio transactions in Spain in recent years.

David Marquina, P3’s Managing Director in Spain, said: “This is a good opportunity to reinforce our footprint in Spain’s central logistics corridor, which connects Madrid, Zaragoza and Barcelona. Our next target is to increase our presence in the Mediterranean corridor, around Barcelona & Valencia and expand to Málaga. We will be focusing on acquiring institutional-quality logistics assets and off-market deals, where P3’s long-term investor-developer approach can make a real difference.

“There are several Build-to-Suit projects and single asset acquisitions in the pipeline, which will allow us to grow to 500,000 m2 of high quality, well-located logistics space under management in Spain before year end.”

The properties range in size from just over 7,500 m² in the Getafe area of Madrid to over 80,000 m² in Zaragoza. They are all fully let to blue chip domestic and international companies including DHL, which is also a P3 customer on seven other parks in four countries, Orangina Schweppes Espana and the office products retailer Staples.

In addition to the built assets, two of the warehouses have adjacent land totalling over 26,000 m², with potential for P3 to develop.

Commenting on the purchase, P3 CEO Ian Worboys said: “The Spanish economy is expanding and we identified the country as a key target for P3 in 2017. We’re delighted to have been able to acquire this portfolio which makes us one of the leading players in Spain and is in line with our growth strategy across Europe as a leading property investor-developer.”

P3 was advised on the purchase by CBRE, legal consulting was provided by Herbert Smith Freehills (HSF).

Original story: P3 Press Release

Edited by: Carmel Drake

Merlin Rationalises Its Portfolio & Backs Logistics Sector

7 April 2017 – Expansión

Following two years of intensive investments, Merlin is now preparing to rationalise its portfolio and extract greater value from its assets. The Socimi led by Ismael Clemente (pictured above) has set itself the challenge of improving the occupancy rates of its offices and shopping centres, as well as strengthening its presence in the logistics sector.

In February, the company announced its plans to increase its stock by more than 500,000 m2. The company has also started to rotate its assets and, following the deconsolidation of the residential business, it closed the sale of its hotel portfolio to Foncière des Murs for €535 million at the end of December.

Another one of the firm’s objectives is to maintain a balanced level of debt. In this way, last October, it placed €800 million in 10-year bonds to cover a bridge loan to Metrovacesa.

Original story: Expansión 

Translation: Carmel Drake

Amazon To Open Logistics Centre In Martorelles

7 April 2017 – Press Release

Amazon’s commitment to Cataluña continues to grow. The e-commerce giant is going to open its new headquarters in Martorelles, specifically, in the Martorelles Logistic Park. Sources at the town hall assure that this new facility in Martorelles will result in the creation of 650 new jobs over the next three years. “Amazon plans to launch operations in the autumn with 200 people”, explained the mayor of Martorelles, Marc Candela.

Amazon will take over the four warehouses in the logistics park, which cover a surface area of 30,000 m2, equivalent to four football pitches. This is Amazon’s fourth investment in Cataluña after it confirmed the creation of a logistics macro-centre in El Prat in June; in September, it will inaugurate a warehouse in the centre of Barcelona from where it will ship products for delivery in less than one hour; and in October, it will build another logistics centre in Castellbisbal.

Warehouses A and B at the Martorelles Logistic Park, the logistics platform developed by the investor group Segro on the grounds of the former Domar-New Pol, on the Martorelles industrial estate, are about to begin operating. Currently, half of the facilities are ready and construction is beginning on the second phase of the logistics complex, warehouses C and D.

Original story: Press Release

Translation: Carmel Drake

Aragón Creates Logistics Group To Unify Sale Of 240 Ha

6 April 2017 – El Periódico de Aragón

Land covering 2,400,000 m2 (240 hectares) in total, a surface area that resembles the Zaragoza neighbourhood of Delicias. That is the volume of land that Aragón Plataforma Logística (APL), the new public company being created by the regional government, is going to sell. The objectives of the future company APL will be to unify the management, promotion and sale of assets that are currently owned by a variety of regional companies.

Specifically, it will group together three large industrial estates in Zaragoza (Plaza), Huesca (Plhus) and Teruel (Platea), as well as Zaragoza Expo Empresarial, la Sociedad para el Desarrollo de Calamocha (Sodecasa) and Plaza Desarrollos Logísticos (PDL, the property developer behind Caladero). With this supply of spaces, to which the Fraga platform (Plfraga) will likely be added soon, the region is looking to strengthen its position as the largest logistics market in the south of Europe.

APL, which should be constituted within the next few weeks through a decree, will be entirely owned by the regional government, specifically, the Corporación Empresarial Pública de Aragón, which will own 100%. The new management team at the Government of Aragón is seeking to optimise and streamline the operation of logistics, industrial and tertiary assets at all levels. (…).

The logistics sector accounts for 5.5% of the region’s GDP and has secured private investment amounting to more than €3,000 million since 2005 when the first phase of Plaza was launched. (…).

Original story: El Periódico de Aragón (by Jorge Heras Pastor)

Translation: Carmel Drake

Logic Spain KCRE Buys 15,252m2 Logistics Platform

30 March 2017 – Mis Naves

The company Logic Spain KCRE, a joint venture created by Brunswick Invest (the main investment arm of Brunswick Real Estate), the international real estate group Grosvenor, and the Spanish investment company Kefren Capital, has completed the acquisition of a logistic platform located in La Bisbal de Penedés (Tarragona).

The platform was constructed in 2005 on a plot of land measuring 25,000 m2. The total constructed surface area is 15,252 m2, including almost 500 m2 of office space and it is leased to Applus Idiada, a subsidiary of the Applus group and market leader in the design, engineering, testing and provision of homologation services for the automobile industry.

The logistics platform is located 5 minutes from the intersection of the AP-2 (Madrid-Barcelona) and AP-7 (Mediterranean Corridor) motorways and is 40 minutes from the port of Barcelona and 20 minutes from the port of Tarragona. The industrial estate where the warehouse is located has direct access to the Applus Idiada test circuit, where the company carries out its vehicle trials and tests.

Logic Spain KCRE is led by the real estate asset manager Kefren Capital Real Estate (KCRE) and has been advised by Bufete Buigas on the legal-side and by Mace regarding technical matters. The operation has been financed by Kutxabank.

JLL advised the vendor during the process.

The logistics platform in La Bisbal represents Logic Spain KCRE’s second investment. The entity plans to invest more than €100 million in logistics assets in the Spanish market. Kefren Capital Real Estate will take responsibility for managing the assets in order to generate value using its extensive experience in the sector.

Original story: Mis Naves

Translation: Carmel Drake

French Fund Corum Will Invest €450M-€500M In Europe In 2017

8 March 2017 – Expansión

The real estate fund manager Corum Asset Management has placed its focus on Spain. The firm, created in 2011 and with offices in Paris and Amsterdam, has closed 2016 with a record investment figure of €328 million.

In the case of Spain, the manager chose the market to carry out its first operation outside of France, acquiring its first asset in 2013: a retail property in Tarragona, which is leased to MediaMarkt.

Three years later, in May last year, Corum sold that asset to a fund managed by Ciloger for €9.43 million. “2016 was a record year in terms of transactions, with a deal volume amounting to €360 million, of which €328 million involved acquisitions. In addition, we made our first sale in an overseas market in 2016, in this case in Spain, where we achieved a significant return”, explained Philipp Cervesa, Head of Investments at Corum AM.

Besides that sale, the French manager closed three purchases amounting to €41.4 million in Spain, involving logistics assets, during the year. Specifically, in April, it acquired two platforms in Gerona and Guadalajara, with a combined surface area of 35,670 m2. Three months later, Corum AM paid more than €24.8 million for a logistics building leased to the company Trabis. “Our strategy is to bet on real estate cycles. We are investing in Spain because it offers good diversification and is a very dynamic market”, said Cervesi.

Both operations achieved a return of around 7.6%. “We invested heavily between 2013 and 2014, when the market fell, and thanks to that, we have undertaken some good deals, such as the sale of the property leased to MediaMarkt, which we sold last year for a hefty profit”. A high return that the manager forecasts it will maintain in 2017. “We are looking for assets with long-term lease contracts and high returns, of around 7%, he added.

This year, the manager, which invests directly through an Asset Management fund, has set itself the objective of increasing its portfolio to €500 million. “Our strategy for 2017 is to invest between €450 million and €500 million in the Eurozone. We have not set ourselves any country limits, which means that we could buy an unlimited amount in Spain”, explained the Head of the fund.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Prologis Invests €11M In A Logistics Project In Madrid

20 February 2017 – Expansión

Prologis, the world leader in real estate assets, has decided to launch two logistics projects in Spain. “Our most recent project involved a 14,000 m2 distribution warehouse, which we built for TNT in the Puerta de Madrid industrial estate in San Fernando de Henares. That was completed in 2015. Prior to that, our next most recent development was initiated at the beginning of 2008”, explains Gustavo Cardozo, Senior Vice President at Prologis Iberia.

Now, Prologis has decided to launch a 23,000 m2 industrial complex in Valencia, which it initiated at the end of 2016, and it is also starting a new 21,000 m2 development in Madrid.

The latter is a logistics building in Prologis Park San Fernando de Henares, a 90,000 m2 industrial complex that Prologis started to develop a year and a half ago, with urbanisation and infrastructure works.

Prologis will invest €11 million in the new building in Madrid, including the cost of buying the land. “The logistics market in Madrid lacks modern and efficient warehouses in the metropolitan area and we think that demand for large spaces is going to grow over the next few months”.

Prologis Spain owns 38 logistics properties covering more than 800,000 m2.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Gesvalt: Madrid’s Logistics Sector Grows For First Time Since 2009

13 February 2017 – Observatorio Inmobiliario

The leasing of industrial warehouses in the Community of Madrid increased in 2016 for the first time in eight years following a recession in the logistics sector. The evolution of the market in the region last year confirms the positive forecasts that experts predicted at the end of 2015. Nevertheless, it is worth noting that this increase in the volume of space leased in the logistics sector was mild and gradual over the whole period, according to the conclusions of the latest report from Gesvalt, a consultancy and asset valuation company.

Sandra Daza, Director General at Gesvalt, considers that “these are noteworthy figures because they are evidence of the reactivation of the sector, which will also undergo more changes over the next few years, due to the reactivation of consumption and the evolution of e-commerce”. In this sense, Daza forecasts that “we are going to see an increase in the supply of these types of industrial warehouses, especially in Madrid and Barcelona”.

In the province of Madrid, which has 43 industrial estate areas, the distribution of industrial space is divided as follows: 32% production, 22% storage, 12% logistics, 7% commercial and 27% business parks.

The extractive and manufacturing sectors are giving way to the drive from the storage and distribution sectors. Large firms dedicated to this activity are moving into the region and are demanding large surface areas, close to large populations and with access to fast roads. Nowadays, these types of assets are the star product in the logistics and industrial sector in Madrid. By contrast, investors have lost interest in smaller warehouses on old industrial estates and the few operations that are taking place are being closed at almost cost prices.

In 2017, the aforementioned change is expected to be consolidated, with slight increases in rents. Returns could reach 7% and a minimal increase is expected in the volume of operations.

Almost 50% of the investors that are operating in the industrial market in the region are domestic and international institutions, whilst the other half comprise Socimis and family offices. By contrast, large financial institutions are the main vendors of these types of products.

80% of the operations in the Community of Madrid in 2016 were located in the Corredor del Henares, although the volume of surface area leased was still low (150,000 m2).

The interest in the market for rental over sale, the scarcity of land in really attractive areas and the relative low rates of return (6%) confirm that although the recovery of the sector is underway, it still has a long way to go.

Within the Community of Madrid, the municipality with the greatest volume of industrial activity is Fuenlabrada, which accounts for 25% of the total and is home to 21 industrial estate areas.

The large Mercamadrid industrial estate, located in the industrial area of Villa de Vallecas, is the largest in the Community of Madrid (1,8000,000/2,000,0000 m²), followed by the Vicálvaro industrial estate, which is as big as the Cobo Calleja de Fuenlabrada estate (1,750,000/1,800,000 m²). (…).

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

Andalucían Gov’t Sells 39 Industrial Plots In Jaén For €3.8M

13 February 2017 – Europa Press

So far during this parliamentary term, the Ministry of Development and Housing at the Junta de Andalucía has disposed of 55,284 m2 of industrial land in the province of Jaén, spread over 39 plots, worth €3.8 million.

The proceeds received will be used to strengthen the management of land and public housing that the autonomous Government is developing, both in the province, as well as across the whole of Andalucía. In total, the sale of industrial, commercial and residential land during the same period has amounted to 185,774 m2, worth €30.7 million. (…).

The land sold in the province of Jaén is located in Alcalá la Real, Torredonjimeno, Huelma, Villacarrillo, Arjona and Martos. In the latter, the land sold is all located in the Cañada de la Fuente industrial estate, where the Junta invested €13 million on expansion with the aims of: strengthening the local production fabric; favouring commercial exchanges; driving economic development in the city and its surroundings; and generating employment.

“This sale of industrial land is one of the activities that we are promoting in the Andalucían Government to provide companies with land in the best possible conditions to facilitate growth and development, and therefore, the generation of employment”, said Felipe López, councillor at La Junta. (…).

The councillor added that his department will launch a new public tender at the end of February to sell 17 plots of land that have not been sold yet on this industrial estate and which have a surface area of 24,161 m2 and a value of €2.28 million. (…).

Original story: Europa Press

Translation: Carmel Drake

Lar Buys 200,000 m2 Plot In Cheste To Build Logistics Park

13 February 2017 – El Mundo

It has not even been built yet, but the Ciudad Circuito de Cheste industrial estate is already making its name as an important logistics hub in Valencia. Lidl, which has already announced that it is going to build a new logistics platform here, is now going to be joined by Lar España. The Socimi has acquired around 200,000 m2 of land in the municipality of Cheste, next to the A-3 motorway and just 5km from the intersection with the Mediterranean Highway, on which it plans to build a new logistics park, .

The land acquired by Lar España is located just a few metres from the Circuito Ricardo Tormo, a strategic point in the region of Valencia, given that it is the junction where the roads to the centre and south of the Peninsula meet. In addition, it is just 17 km from Manises Airport and around 30 km from the Port of Valencia, which has become the main entry and exit port for goods.

The operation by Lar España is independent of the one already announced by the German retailer although both were signed on Wednesday 25 January 2017, according to confirmations yesterday from a municipal source. Lidl’s logistics platform is going to occupy a surface area covering 120,000 m2 and with Lar’s purchase, one third of the industrial estate, whose total surface area will amount to 900,000 m2, has already been occupied, before the development of the site has even begun. (…).

Original story: El Mundo (by Francisco Álvarez)

Translation: Carmel Drake