10 July 2019 – Richard D. K. Turner
Merlin Properties, a socimi listed on the Ibex 35, is finalising an agreement with the French retail giant Carrefour to develop a 100,000-square-meter logistics platform in Azuqueca de Henares, Guadalajara. The socimi will invest approximately 60 million euros in the turnkey project, which will be finished by the end of 2020.
Many of the details of the operation are not yet known, as the two firms are still finalising their agreement. However, the eventual rental contract is likely to be a long-term one, at least ten years. This is because the logistics platform’s location is a part of Carrefour’s strategic plans. The site will be Carrefour’s largest in Spain. A long-term contract would also be of interest to Merlin, locking in a guaranteed income flow for a longer period. This is because the current average contract period is just three years.
Merlin will invest 50 to 60 million euros to build the warehouses. The project already has all the necessary permits, so construction is likely to wrap up before the end of 2020. Carrefour would then concentrate its Madrid-based logistics operations at that one site.
The good news for Merlin Properties comes at a time when the allocation of logistics assets fell by over 50% in Madrid compared to last year due to a lack of major operations.
Original Story: Merca2 – Carlos Lospitao