Invesco Buys 2 Warehouses in Madrid’s Prime Logistics Area from GreenOak

21 November 2018 – Eje Prime

Invesco is raising its commitment to the Spanish logistics sector. The British real estate group has purchased two warehouses located in the Puerta de Madrid Logistics Park from the US fund GreenOak. The two warehouses have a surface area of more than 38,000 m2, according to a statement from the company.

The assets are located on Calle de los Tapiceros in San Fernando de Henares, an area very close to the Spanish capital and the A-2 motorway, the busiest road in the last mile market. Invesco expects that the warehouses, which have a high degree of occupancy, will be finished by the end of the year. The operation has been advised by the real estate consultancy Cushman & Wakefield.

This new investment in Madrid, whose amount has not been revealed, follows the group’s search for a tenant for the 30,000 m2 logistics platform that it owns in Los Gavilanes, in Getafe.

Moreover, across the whole of Spain, Invesco has undertaken several operations in the logistics market over the last year. One of the most important took place last December when the real estate group acquired the facilities that house the headquarters of Mango in Palau-solità i Plegamans (Barcelona) for more than €100 million.

Original story: Eje Prime 

Translation: Carmel Drake

Segro Purchases 44,500 m2 of Land for Industrial Development in Madrid

11 October 2018 – Eje Prime

Segro is increasing its commitment to the Spanish logistics sector. The British Socimi, which specialises in the industrial segment, has purchased 44,500 m2 of land on which it is going to build two urban distribution centres in Madrid.

The first logistics space is going to be located in the south of the Spanish capital. The centre, spanning a surface area of 33,500 m2, will be located in the district of Villaverde, an area that is home to multinationals such as Telefónica, Repsol and Air Liquide.

The Socimi is also planning to build a second warehouse measuring 11,000 m2 in the Madrilenian municipality of Coslada, where it already owns a business park. The company has chosen that location due to its proximity to Barajas airport, the centre of the Spanish capital and motorways such as the A-2 and the M-40.

This operation reinforces the good times that the logistics sector is enjoying in Spain, driven by the rise in e-commerce in the country. Not in vain, in 2017, the sector achieved an investment record, exceeding €1.5 billion.

With demand constantly growing, above all due to the arrival of international funds and investment firms that are keen to enter the logistics segment, encouraged by the high yields and stability, operators are also looking for land in the last mile space to respond to current demands. That means the development of sites on the outskirts of large cities, with assets that are no more than 50km away from the city centre.

Original story: Eje Prime

Translation: Carmel Drake

GreenOak to Debut Second Socimi, Go Madrid Benz, on the MAB

15 May 2018 – Eje Prime

GreenOak is going to ring the bell again on the Alternative Investment Market (MAB). And this time it will do so with Go Madrid Benz, its second Spanish Socimi after Gore Spain, which made its stock market debut in January 2017. The US fund has already filed a request with Spain’s National Securities and Exchange Commission (CNMV) to incorporate the company on to the stock market; its main asset is the Las Mercedes Business Park. GreenOak’s intention is for the shares in this company to be listed before the summer.

With a surface area for offices and other administrative buildings spanning 80,000 m2, Las Mercedes is the jewel in the crown of Go Madrid Benz. The fund, which is led in Spain by Javier Zarragoitia, wants to assert its control over the 46% share capital that it owns in the Socimi to debut it on the stock market. The objective of the company is to achieve gross annual rental income of €7.65 million, with a yield of 6.5%, according to El Confidencial.

The sole shareholder of what will be the newest listed Socimi on the insatiable MAB, which is also home to more than fifty companies, is Go Benz Sarl, one of GreenOak’s investment vehicles. The fund has owned Las Mercedes since 2016 when it paid Standard Life €130 million for the business complex located in the northeast of Madrid.

The Las Mercedes Business Park comprises nine office buildings, situated around the A-2 motorway, an attractive area for companies, which has undergone significant development in recent years. Indeed, just a few weeks ago, GreenOak raised €95 million to refinance this asset through a long-term loan signed with PBB Deutsche Pfandbriefbank.

Original story: Eje Prime

Translation: Carmel Drake

Record Breaking Logistics Leasing In Madrid In H1 2017

19 July 2017 – CBRE

400,000 m2 of logistics space was leased in Madrid during the first half of 2017, which represents an 117% increase in demand with respect to the same period a year earlier, according to data from CBRE, the largest real estate consultancy and services company in the world.

In fact, the total registered figure so far this year almost equals the amount for the whole of last year, when 404,000 m2 of logistics space was leased. Specifically, 269,000 m2 of logistics space was leased between April and June whereby doubling the figure recorded in the previous quarter (130,000 m2).

According to Alberto Larrazábal, National Director of Industrial and Logistics at CBRE, “this increase in leasing volumes is due, primarily, to the increase in the number of transactions involving large surface areas, which has been strengthened by a phenomenon that has increasingly more influence in society and which is revolutionising this sector in particularly: namely, e-commerce”.

Some of the most noteworthy operations closed during the first six months include DSV in Cabanillas del Campo, covering a total of 49,800 m2, the XPO in the same town, covering 47,934 m² and the deal closed in Getafe, covering a total surface area of 58,215 m2. The last few months have also seen Transaher close an operation in San Fernando de Henares, measuring 42,000 m², and Miquel Alimentació lease space in Torrejón de Ardoz, covering 20,372 m².

In this sense, the A-2 and A-4 motorways are where most of the space was leased during the first half of 2017 in the area surrounding the capital. Specifically, the A-2 accounted for 62% of the space leased (249,000 m2), followed by the A-4 (118,000 m2).

In terms of prime rent in the local distribution area, it remained stable at €5.25/m2/month.

In Barcelona, meanwhile, 112,000 m2 of logistics spaces was leased during the second quarter of 2017, 10% less than during the previous quarter (125,000 m2). In terms of the cumulative figure for the half year, it exceeded 237,000 m2, which was 40% lower than the volume recorded during the same period last year.

Nevertheless, it is worth mentioning that a turnkey operation was closed by Amazon in El Prat de Llobregat in Q2 2016. Thus, if we exclude that operation from the comparison, 23% more logistics space was leased in H1 2017, which indicates a positive trend.

The most noteworthy operations closed in Barcelona during the first half of 2017 included the rental of a 34,000 m2 warehouse in Martorelles to Segro, the leasing of 17,000 m2 of space on the Anoia Industrial Estate to GV El Zamorano, and the pre-lease operation by the company VIBIA to Clape Group, involving a surface area of 14,000 m2 in Gavà. In addition, MediaPost signed a turnkey operation with Solvia to construct a 12,000 m2 warehouse in Polinyà (…).

Finally, the prime rent remained stable at €6.50/m2/month in Barcelona, although it is expected to increase over the next few months, due to the clear absence of available space.

Original story: CBRE

Translation: Carmel Drake

Leche Pascual Group Leases 11,000m2 Warehouse In Madrid

20 January 2017 – Mis Naves

ProEquity has leased 11,220 m2 of space in the Casablanca logistics platform in Torrejón de Ardoz, to the Leche Pascual Group. As such, the dairy group has become the first tenant at the site.

The operation includes offices covering 669m2, which have been adapted to suit the operator’s requirements, as well as 149 parking spaces.

The Casablanca logistics platform has been developed on a plot of land measuring 84,968m2, of which 47,500 m2 corresponds to leasable surface area. It comprises two independent warehouses and it is located in the main hub for logistics and distribution operations in Madrid, 20km from the city centre and 10km from Barajas airport.

The site has direct access to the A-2 motorway connecting Madrid and Barcelona, which represents a key factor for distribution and logistics companies.

The platform is owned by the investment fund Rockspring which, according to John Thompson, Director of the branch in Spain, is in negotiations to lease another 20,000 m2, which could result in an occupancy rate of more than 60% of the available space.

Rockspring currently manages a portfolio of logistics space amounting to €800 million across France, the UK, Germany, Spain, Sweden and The Netherlands. It also has a reserve of land with potential to develop up to 240,000 m2 of space.

Original story: Mis Naves

Translation: Carmel Drake