VGP Acquires a 15,000-m2 Plot of Land in Cheste

19 November 2019 – The logistics developer VGP has acquired a more than 15,000-m2 plot of land from the Generalitat Valenciana’s Circuito del Motor y Promoción Deportiva (CMPD). The state-owned firm put the asset up for sale in August at an initial price of 2.7 million euros. VGP was the only bidder.

The land is located near the A3 Valencia-Madrid highway and is a part of the Cheste Circuit Business Park sub-division project. The public company currently has no plans to sell its second plot of land in the area, located near to the Ricardo Tormo Circuit. The company has been the only one to present an offer.

Zoned as urban land for commercial or industrial use, the plot of land has an area of ​​15,360.66 square meters and a buildable area of ​​9,984.43 square meters.

Original Story: Valencia Plaza – Begoña Torres

Adaptation/Translation: Richard D. K. Turner

VGP Invests €22M in 2 Logistics Platforms in Cheste (Valencia)

15 May 2019 – Levante EMV

The Czech group VGP has announced that it is going to invest €22 million in the construction of two latest-generation logistics platforms on plots spanning 75,000 m2 in Cheste. The logistics platforms will span 15,000 m2 and 26,000 m2, respectively, and the projects are expected to create around 400 new jobs.

The logistics industrial estate in Cheste is enjoying a boom in recent times driven, in particular, by the Lidl logistics platform. It sits within the first logistics ring of Valencia and has direct access to the Manises airport, as well as to the Port of Valencia.

VGP will add these assets in Cheste to the other sites that it is already developing in Spain, including VGP Park San Fernando de Henares, VGP Park Lliçà d’Amunt, VGP Park Fuenlabrada and VGP Park Zaragoza, which together span 360,000 m2.

Original story: Levante EMV (by Ramón Ferrando)

Translation/Summary: Carmel Drake

Valencia’s Logistics Market will Incorporate 6+ New Platforms in 2019

14 May 2019 – Valencia Plaza

The logistics real estate sector in Valencia is on a roll. At least that is according to a study conducted by Triangle Real Estate Management, which highlights the plentiful supply in the province, in particular in the Riba-Roja and Cheste areas.

Construction is currently underway on three new logistics platforms, spanning 53,000 m2 in total, in the town of Riba-Roja, which are expected to be completed in Q3 2019. Moreover, work has already been finished this year on three other logistics properties in Paterna, Torrent and Loriguilla, with a combined surface area of 40,000 m2.

In addition, there are eight other projects in the pipeline to build turnkey properties, spanning a total surface area of 261,123 m2, which will be ready 9-12 months after they have been signed.

Stock of properties

On the other hand, the report details that the total stock of properties available for storage in the Valencia area spans a surface area of more than 2.5 million m2, of which 60% is located in the Valencia Logistics Corridor, comprising the municipalities of Riba-Roja, Loriguilla and Cheste. However, most of the available surface areas are “old, small properties”.

Land under development

The Valencian logistics market also has 6 million m2 of land available for development, in other words, land that is buildable and classified as industrial but pending the completion of one or more urban planning procedure. 75% of that land will be developed over the long-term, in other words, in more than 5 years time.

Rental prices

Market prices have risen in recent months due to the shortage of supply. Asking prices in the prime areas along the A-3 (Riba-Roja, Cheste, Loriguilla and Quart de Poblet) amount to €4.5/m2/month, compared with €4.25/m2/month in the area around the Ford Almussafes factory and €3.75/m2/month in secondary areas and places such as Sagunt.

Original story: Valencia Plaza (by Begoña Torres)

Translation/Summary: Carmel Drake

Lar España Excites the Market with its Logistics Portfolio

23 April 2018 – Expansión

The Socimi, which owns five complexes in Guadalajara and Valencia, has received a dozen offers for its assets, all of them for a price of more than €75 million.

Some of the players that have bid for Lar España’s logistics portfolio include the US fund Blackstone, P3 Logistic Parks – a platform controlled by the Singapore sovereign fund -, Palm Capital, CBRE Global Investors, Ares Management and Nuveen, according to market sources speaking to Expansión.

In the logistics sector, the Socimi in which the fund manager Pimco holds a stake, owns four complexes in the municipality of Alovera (Guadalajara), in the heart of the Corredor del Henares.

Together, that site comprises ten logistics warehouses with a total constructed surface area of 142,630 m2 occupied by tenants such as Saint Gobain Isover Ibérica, Tech Data, Carrefour and Factor 5. In addition, the Socimi owns a logistics complex in Almussafes (Valencia) containing a logistics warehouse with a constructed surface area of 19,211 m2. That warehouse is occupied by Valautomoción, the supplier of car parts and accessories to Ford, which was acquired by Ferrostaal in 2015.

According to the latest figures published by the Socimi, its portfolio of logistics assets has a valuation of almost €90 million. Moreover, Lar owns around 200,000 m2 of space for a new logistics development in Cheste (Valencia), which it is not planning to sell until it has finished construction there, to make the investment profitable, according to information reported by the company at the time.

According to Lar’s accounts, the land, which it purchased less than a year ago from Bertolín, has doubled in value since the investment was made. The Socimi paid €2.2 million for the 112,813 m2 plot in Cheste in May 2017 and, at the end of last year, it had a market value of €5.2 million.

Other divestments

Lar España has launched an asset rotation plan to raise cash and undertake new investments in shopping centres After selling two office buildings to Colonial, both in Madrid, for €112 million, the company now has three office buildings in Madrid and Barcelona worth around €85 million.

Moreover, it expects to raise €110 million from the sale of its stake in the luxury residential development Lagasca 99 (Madrid), which it owns jointly with Pimco.

In parallel, the company is going to maintain its investment plan. It expects to allocate €220 million to new acquisitions in retail centres and parks and will invest €247 million in developments, especially commercial ones, and another €49 million on improving its assets.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Madrid & Valencia Led The Logistics Market In October

6 November 2017 – Cadena de Suministro

The month of October was marked by the developments carried out by Mercadona, Grupo Lar and Inditex in the Community of Valencia; as well as by the transfer of DB Schenker’s operations in Madrid, Invesco’s new development in Getafe and Neinver’s purchase of a 40,000 m2 site (also in Madrid).

The Spanish logistics market is continuing to perform well, as demonstrated by the increase in demand in Madrid (+57%) and Valencia (+35%) during the 9 months to September. It is precisely in Valencia where, in October, TH Real Estate acquired the logistics platform that serves Carrefour.

Meanwhile, in the Spanish capital, Neinver incorporated 40,000 m2 of logistics space into its portfolio, located in an industrial estate in the town of Getafe; and in Zaragoza, Ibercaja sold two warehouses, measuring 15,926 m² and 11,170 m² in PlaZa to Savills Investment Management.

At the international level, one of the most noteworthy operations last month was the purchase of IDI Gazeley by Global Logistics Properties for €2,400 million. The acquisition of Logicor also pushed ahead, for which China Investment will pay €12,250 million, in a deal that has finally been approved by the European Union.

New developments

In terms of new developments, Madrid and the Community of Valencia headed up the leaderboard once again. Mercadona formalised its purchase of a 358,270 m2 plot in Parc Sagunt, where it is going to build its largest logistics centre in Spain, whilst Lar España committed to starting work soon on the construction of its logistics park in the Valencian town of Cheste.

Meanwhile, Inditex plans to expand its facilities in the Alicante town of Elche, where it has a platform dedicated to footwear. In the same way, it plans to open a new centre in Marchamalo, in the Corredor del Henares area, at the end of 2018.

In Madrid, the operator DB Schenker moved and unified the operations of all of its divisions into a new location in Vicálvaro, where the Port Authority of Valencia is considering establishing an intermodal logistics platform.

Meanwhile, Invesco started building new facilities on the Puerta Mayor Los Gavilanes Business Park, in the town of Getafe. In terms of Barcelona, which saw less activity in the logistics market in October, Kiabi announced it is about to start operations at its new centre in La Bisbal de Panadés.

In other geographic regions, the Ministry of Development found a definitive location for the logistics platform in Talavera de la Reina, Toledo. Moreover, the Junta de Andalucía announced that it will spend some of its budget for 2018 on turning the autonomous region into a logistics hub, capable of leveraging the traffic that connects Europe with the North of Africa and America.

Operations involving logistics clients

One of the most important developments undertaken by the business sector in Spain in October was the opening of Elektro 3’s logistics platform in Tarragona, with a surface area of 16,000 m2, and of Covestro’s platform in the same province. Moreover, the Construction Platform was opened in the Madrilenian town of Pinto, spanning 33,000 m2 and the equivalent version was opened in Froiz, Vigo, measuring 1,700 m2.

Construction work also started at Berlys’ new plant for frozen products in the Navarran town of Tajonar as well as on the plant for Frutas E. Sánchez in Mercamadrid, which will be operative from Q1 2018 and November 2018, respectively.

In this context, the spare parts distributor Diesel Technic announced that it will move its warehouse from Alcalá de Henares to the Casablanca II de Rockspring platform in Torrejón de Ardoz; and the Zaragoza-based company Casa Matachín said that is planning to invest €21 million on the construction of a logistics platform in PlaZa.

Original story: Cadena de Suministro

Translation: Carmel Drake

Lar To Build Its 6th Spanish Logistics Park In Cheste (Valencia)

17 October 2017 – Eje Prime

Lar España is putting its foot down on the accelerator. The Socimi is finalising plans for a new logistics park in Cheste (Valencia), the sixth industrial project to be undertaken by the firm in Spain. The firm has already created a company to manage the complex, which spans a leasable surface area of 122,000 m2. Now, planning permission just needs to be granted for the site so that the construction work can begin.

The project has already been granted environmental approval, according to El Español, and will be located in one of the most important enclaves for the logistics sector in Valencia, a short distance from the major distribution centre in Ribaroja on the Ciudad Circuito industrial estate. The forecast investment in this new logistics park will amount to almost €16 million.

In addition to logistics activities, the site will also be kitted out for cross-docking and will allow the entry of mega-trucks.

The company created for this asset is called Lar España Inversión Logísitic VI, which will be led by Miguel Pereda, a proprietary director of the Socimi, whilst Jon Armentia, Corporate Director of Lar España, will perform the role of Vice-President.

The project in Cheste represents the company’s sixth logistics investment, given that it already owns one complex in Valencia, in Almussafes, and four in Guadalajara (Alovera), worth €77 million in total.

In Spain, 80,000 m2 of logistics space was leased during the third quarter of 2017, down by 29% compared to the previous quarter (112,000 m2). In terms of the cumulative figure for the half year, more than 317,000 m2 of space was leased, down by 57% compared to the same period last year.

Original story: Eje Prime

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