Tag: Corredor del Henares

Savills: Logistics Leasing in Madrid Rose by 2% in 2018 to Exceed 935,000 m2

14 January 2019 – Savills Aguirre Newman

The logistics market in Madrid has registered a new leasing record. The boost from e-commerce has been the main driver behind the absorption of 935,000 m2 of space in 2018, which represents an increase of 2% with respect to the historical record figure in 2017, according to data from Savills Aguirre Newman.

During the last quarter, 23 operations were signed involving more than 300,000 m2 of space, compared with 24 operations and 308,000 m2 of space during the same period in 2017. During the year as a whole, 77 operations were registered in 2018, compared with 70 during the previous year. It is worth highlighting the importance of the cross-docking activity during 2018, where seven operations were closed.

In terms of rental prices, the €8/m2/month peak that established the annual maximum was recorded at T4 (Airport) in Barajas. Excluding that figure, due to the uniqueness of the Barajas market, maximum rents exceeded €6/m2/month in a cross-docking operation in San Fernando de Henares. The incorporation of new high-quality projects that are adapted to the requirements and expectations of the operators have favoured an increase in prime rents to €5.5/m2/month (+7% YoY).

In terms of the size of the operations, almost 50% of the space leased during the last quarter of the year was concentrated into four operations spanning more than 30,000 m2 each, all of which were signed in the third ring.

By area, the distribution of the surface area leased between October and December was very homogeneous, with 55% and 45% registered in the Corredor del Henares and the southern area, respectively, although the Corredor del Henares continued to capture the most demand. The distribution in terms of the number of operations clearly showed the superiority of Corredor del Henares, which accounted for 70% of all activity (16 operations).

The annual analysis by area reveals a similar picture. The volume of surface area leased was very similar (>495,000 m2 in Corredor del Henares and >408,000 m2 in the southern area), but by number of operations, Corredor del Henares again accounted for the bulk of activity (48 operations versus 22 in the south).

Activity in the land market is continuing to gain weight. During 2018, 34 operations were signed in total spanning 1,800,000 m2 (+60% YoY). It is worth highlighting the three areas that accounted for almost 50% of the land surface area operations: Guadalajara (>350,000 m² in 2 operations), Illescas (>326,000 m² in 4 operations) and Torija (>279,000 m² in 4 operations).

The year closed with an availability rate of 6.9%, which represents a decrease of almost two points with respect to 2017. During 2018, more than 650,000 m2 of space was incorporated into the market, of which 67% was already committed. The future supply for 2019 will exceed 1,500,000 m2, of which 30% already have pre-rental contracts.

The dynamism in the market for users of the logistics sector during 2018 has been reflected in the investment market, with 45 operations exceeding €1.3 billion. Those figures mark new records in the historical ranking. The number of transactions involving individual assets stood out since it exceeded the figure recorded in 2017 by three times.

Original story: Savills Aguirre Newman 

Translation: Carmel Drake

Prologis Leases a 11,600 m2 Warehouse in Madrid

30 October 2018 – Eje Prime

Prologis is arriving in Coslada. The US logistics company has leased a warehouse measuring 11,600 m2 to the courier and express transport company Tourline Express in the municipality of Madrid.

The logistics centre is located fifteen kilometres from the centre of Madrid, at the start of the Corredor de Henares, the main logistics axis in the capital of Spain, and two kilometres from Barajas airport.

Similarly, the park has direct access to the A-2 motorway, as well as to the M-21 and M-45 motorways. For Gustavo Cardozo, Senior Vice-President of Prologis Iberia, “the great appeal of this location stems from its high-quality properties and strategic connections”.

Madrid is the jewel in the Spanish logistics crown. Although, other regions have grown considerably in recent years, and the spectrum of the sector is increasingly broad, the Madrid area – including the province of Guadalajara – is the most attractive for 63% of those surveyed at the most recent edition of the International Logistics Fair (SIL), which Prologis organises every year.

Prologis is a US logistics company, listed on the New York stock market, which has a presence on four continents in 19 countries. In Spain, it has 42 distribution centres, located in Madrid, Barcelona, Valencia and Tarragona, where it has more than 786,731 m2 of logistics space. As at 31 March, the company had undertaken investments in properties and projects under development spanning approximately 63 million m2.

Original story: Eje Prime

Translation: Carmel Drake

Merlin Acquires 2 Logistics Assets in Ribarroja & Henares for €42M

21 September 2018 – Finanzas.com

Merlin Properties has acquired two logistics assets for €42 million: a platform that it has purchased from the construction firm Pavasal on the Valencian industrial estate of Ribarroja, between the A7 and A3 motorways, and a plot for the construction of another warehouse in San Fernando de Henares, next to the A2 and M50 motorways in Madrid.

According to reports from the real estate consultancy firm BNP Paribas Real Estate, which has advised Merlin on the two operations, speaking to Efe, the two deals were closed in July.

The Ribarroja platform, on the Sector 13 industrial estate, has a constructed surface area of 35,282 m2, with fifty loading docks and three modules; it will be handed over during the second quarter of 2019.

The operation in the Corredor del Henares involves a logistics project that will have a surface area of 100,000 m2.

Original story: Finanzas.com

Translation: Carmel Drake

M&G Real Estate Purchases 3 Commercial Premises in Madrid & Granada

29 May 2018 – Eje Prime

M&G Real Estate is continuing its shopping spree in Spain. The real estate division of the British fund M&G Investment has acquired two commercial premises in Madrid and a third in Granada. Moreover, the firm has also added two industrial assets in the Spanish capital to its portfolio.

The commercial premises in Madrid are located at number 68 Gran Vía, whilst the asset acquired in Granada is located on Calle Reyes Católicos, where the Swedish fashion retailer H&M recent opened a store. In the Spanish capital, the tenants of the retail spaces are the restaurant chain Tony Roma’s and the financial entity Banco Sabadell, which will open its flagship branch in the premises soon.

Meanwhile, in the logistics sector, the real estate investment firm has purchased a logistics platform in Corredor del Henares, which is leased to Teka, and an industrial complex in Getafe. In total, those two assets span a surface area of more than 55,000 m2.

Original story: Eje Prime 

Translation: Carmel Drake

M&G Invests €80M to Strengthen its RE Portfolio

29 May 2018 – Expansión

The real estate division of the London-based firm M&G Investment has decided to bet significantly on the Iberian market, where its exposure now exceeds €500 million. “We are partners of institutional investors looking for core properties in the best locations across Europe. We opened our office in Spain in 2016, but we completed our first operations there a year earlier”, explains Federico Bros, Director of Asset Management for Spain and Portugal.

Its first operation involved the purchase of the former headquarters of Telefónica located on Calle Ríos Rosas (Madrid) and leased to the advertising giant WPP. “It is an example of what we look for, well-located assets with long-term contracts, 17 years in this case. Between the renovation and purchase we will invest €175 million in that property”, says Bros.

After that acquisition came others, such as an office building in Barcelona’s 22@ district and, recently, five operations with a very diverse profile. On the one hand, M&G purchased three commercial assets: two in Madrid and one in Granada. “The premise in Granada, measuring 2,500 m2, is located on Reyes Católicos, the best shopping street in the city”, explains Bros. In the case of Madrid, M&G acquired two retail premises on Gran Vía 68. “We closed this operation in May but we have been negotiating it for months, given that the building was being renovated. A few months ago, a large Tony Roma’s restaurant opened there and Sabadell is going to open its flagship branch in the other premise in a matter of days”, he said.

Similarly, the firm acquired two industrial assets in Madrid, specifically a logistics platform, leased to Teka, in the Corredor del Henares, and another complex in Getafe. Those two sites span more than 55,000 m2. In total, the firm has invested €80 million on its latest operations, channelled through two funds: MEP and EuroSPIF.

More opportunities

Following these investments, the manager is still looking for opportunities in the Spanish market.

“We are involved in several processes, both official and off-market, in Madrid, Barcelona and prime locations in other cities. Spain is a priority country for us”, says Bros.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Aena Kicks Off Spain’s Largest RE Project with Public-Private Investment of €3bn

24 April 2018 – El Confidencial

Aena has fired the starting gun for the largest real estate development plan in Spain, equivalent to four times Operación Chamartín or ten times the Retiro Park. It is the Real Estate Plan for the Adolfo Suárez Madrid-Barajas Airport, which will involve a combined public-private investment of €2.997 billion.

This project, which Aena has been working on since before its stock market debut, proposes the development of 562 hectares of new land, which would allow it to place a buildable surface area of 2.68 million m2 on the market over the next 40 years.

The bulk of the land will be allocated to the development of the largest logistics centre in Spain, which will link the airport’s current cargo loading area with the Corredor del Henares, one of the main logistics regions in the country.

The land allocated to this use will span 257 hectares in total and 1.48 million m2 of buildable surface area, most of which will be developed over the next eight years, and which will mean multiplying the space in the airport dedicated to this use by ten-fold.

The rapid growth of e-commerce and the need from giants such as Amazon and Correos to have large warehouses next to Spain’s largest airport, and the gates of Madrid, are behind the business logic for this move, given that Aena is not planning to build any homes in the area.

In this way, this part of the development will be configured into parks with integrated logistics and transport services, as well as loading warehouses and distribution stores; its main objective will be to serve companies in the electronics, biopharma and perishable product businesses, amongst others. Over the next eight years, the second phase of the plan will begin, aimed at completing the logistics uses and, above all, building a new business centre, known as Airport City, to house the headquarters of large companies such as Aena itself and its parent company, Enaire, as well as four hotels that will add 900 rooms to the existing supply in Madrid.

The total surface area reserved for those uses is 62 hectares, with a forecast buildable surface area of 652,000 m2, 90% of which will be dedicated to offices.

These buildings will be located in an area adjacent to T4, which has already been pre-urbanised and which will have pedestrian access to the terminal, and which will also be connected by public transport (metro, suburban train and bus).

There will also be a leisure and shopping centre, covering a total surface area of 57 hectares and a total forecast buildable surface area of 341,000 m2, plus 298,000 m2 of green space.

Aena hopes to turn this leisure space into a magnet in its own right and, to this end, it plans to open a themed recreation area, a shopping centre, a gastronomic space, wellness areas, an aeronautical museum and panoramic observatories.

“It is an ambitious but realistic plan that is perfectly feasible”, said the Minister for Development, Iñigo de la Serna, during the presentation of the plan this morning, where he also pointed out that the urban planning procedures for these plots of land will be agile.

The plots that form part of this plan will be developed under a concession regime, given that Aena will continue to be the owner. All indications are that at its next meeting, the company’s Board of Directors, chaired by Jaime García-Legaz, will formally initiate this process.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Spain’s Logistics Crowns: From Madrid’s M-40 to the Port of Barcelona

24 April 2018 – Eje Prime

Madrid and Barcelona are the kings of Spain and their crowns attest to that fact. The two largest cities in the country are surrounded by three rings that, in addition to accounting for most of the country’s logistics traffic, provide clear answers to the three main questions being asked in the sector: what, how many and how are products demanded. The first ring is a testament to the strength of last mile delivery driven by e-commerce; in the second ring, a large proportion of products are stored on rotation; however,  the third ring, where the largest warehouses are located, saw the most space leased last year.

In general terms, 2017 was a record year for the logistics markets in Madrid and Barcelona. Together, both cities signed rental operations for space spanning more than 1.2 million m2, which represented an increase of 12% with respect to the figure from the previous year and the best result in the last decade, according to the Logistics – The revolution of a booming market report, compiled by the consultancy firm JLL.

The reasons for this boom in terms of transport and storage stem from the strong performance of the Spanish economy and, more specifically, the boom in e-commerce, which is starting to change the way the logistics market operates, in the knowledge that, over the next few years, demand for urban space to handle online purchases is going to double.

Madrid was the Spanish city that saw most evidence of the strong performance of the sector last year. In the county’s capital, 800,000 m2 of logistics space was leased in 2017, with 64 operations signed (21 more than in the previous year), twice as much as in 2016. This increase in the absorption of space was spread across the three rings that surround the autonomous region and the neighbouring provinces of the adjacent region of Castilla-La Mancha.

In the first ring, the M-40 and the M-50 account for most of the activity, with a high rotation of stock due to the last mile effect. In that enclave, towns such as Alcobendas, Barajas (with high demand due to its proximity to the airport), Coslada, San Sebastián de los Reyes and San Fernando de Henares all stand out. In addition, in this area, but closer to the capital, Vicálvaro and Getafe to the north and south, respectively, are also key locations.

The M-50 is in an intermediate point, which on its way out of Madrid has important places for storage and logistics distribution. With an average rotation rate, a large number of the warehouses whose markets have a regional reach are located in Fuenlabrada, Valdemoro, Alcalá de Henares and Torrejón de Ardoz, amongst other towns.

Amazon, from Toledo to the centre of Madrid

For buyers in the centre of Madrid to receive packages purchased on Amazon in a matter of hours, the second ring is fundamental. The e-commerce giant has set up shop in the Toledan town of Illescas, where it leased 103,000 m2 of space to store the immense volume of stock that it must have available for rapid distribution all over the Spanish capital.

Nevertheless, the ring that absorbs even more space of the so-called central area of the country is the third ring, accounting for 39% of the surface area leased last year. There, Leroy Merlin leased 60,000 m2 of space, after moving into the Meco Industrial Estate. At a distance of between 30km and 60km from Madrid, large warehouses serve as storage for operators who have lower stock rotation and an area of influence that normally spans the domestic sphere. In addition to Meco, in this space, towns such as Azuqueca de Henares, Seseña, Alovera and Ontígola stand out, amongst others.

The Port and El Prat: the key points in Cataluña’s logistics market

In Barcelona, the epicentre of the logistics centre is divided in two: the Port and El Prat. Both are located in the first ring of the Catalan capital and serve as hubs for intermodal and high stock rotation operations, according to the report from JLL. The international consultancy firm explains that this ring is the gateway to southern Europe for goods coming from the Far East and Southeast Asia, which means covering the whole Mediterranean Arc from this point.

There, cross-docking and freight activities that facilitate last mile delivery dominate. The Zona Franca and its logistics park, the air cargo centre at El Prat, Sant Boi de Llobregat, Viladecans and Mas Blau are some of the enclaves that are home to the first ring market.

Nevertheless, and despite the e-commerce boom, it was in the second ring around Barcelona where most logistics space was leased last year. That area was home to 55% of the 460,000 m2 total surface area leased in the Catalan capital, which represented a drop of 30% with respect to 2016.

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

Quabit & Avenue Capital Create a Company to Buy Residential Land

4 December 2017 – El Mundo

Quabit Inmobiliaria and the global investment firm Avenue Capital have constituted a company, in which the US fund holds an almost 10% stake and the property developer controls the majority shareholding, to carry out the purchase and development of residential land in Málaga (Mijas), the Balearic Islands and the Corredor del Henares.

In this way, Avenue Capital is ratifying its support for Quabit’s investment and growth plan and is showing its confidence in the development of those assets, worth almost €75 million. The assets have a combined buildable surface area with capacity for approximately 2,000 homes, according to a statement issued by the property developer.

According to the same source, Quabit Inmobiliaria and Avenue have signed all of the documents that set out the terms of the financing line agreement amounting to up to €40 million, announced in September. Of those funds, which will be used to buy the aforementioned plots of land, 15% will take the form of a participation loan and the rest will correspond to senior debt.

The remaining cost of the land will be financed by Quabit Inmobiliaria through newly issued shares as the result of the capital increase that has already been approved by the General Shareholders’ Meeting.

Upwards review of the Business Plan 2017-2022

This new financing line from Avenue forms part of the financing arrangement for new investments set out in the Business Plan that the company has just updated to reflect the intense investment effort that it has undertaken in 2017. Quabit now has a land portfolio spanning almost 1 million m2 and it has put several residential developments on the market.

The company chaired by Félix Abánades has revised upwards its growth and expansion plan in such a way that it has almost doubled (92%) the objective for the number of new homes it expects to build between now and 2022, to 7,888 units, from the 4,100 units estimated initially.

“Since March, we have managed to close land operations amounting to almost €150 million, for less than initially forecast, thanks to the management expertise of the entire team. That gives us great visibility over our business plan and, in turn, allows us to extend our projections until 2022, which is when we will reach our cruising speed, with the hand over of 3,000 homes per year”, explains the President.

This investment effort and the launch of new developments will allow the company to exceed the revenue and profit forecasts it made in January by 20%. The company has designed an ambitious land acquisition plan, which will see it invest €673 million. The forecasts indicate that the firm will record revenues of €1.915 billion, generate operating cash flow of €463 million and distribute €87 million in cash dividends between now and 2022.

Original story: El Mundo

Translation: Carmel Drake

Quabit Approves €110M Capital Increase To Finance Land Purchases

17 November 2017 – Expansión

On Wednesday, Quabit, the shareholders of the property developer chaired by Félix Abánades, approved several capital increases amounting to more than €110 million, which will be used to finance the purchase of land in Málaga, Costa del Sol, the Balearic Islands and the Corredor del Henares.

The purchase of these plots will be financed primarily by a line of credit amounting to €40 million, agreed with Avenue Capital Group, and by the delivery of new shares in Quabit issued at a price of €2 per share, which will represent a 27% increase in the company’s share capital. To this end, it will increase its share capital through non-monetary contributions amounting to €41.8 million, through the issue of approximately 20.9 million new shares.

Similarly, the shareholders of Quabit approved another monetary capital increase amounting to €70 million to prevent/avoid the dilutive impact of the non-monetary expansions. This increase will be completed through the issue and placement into circulation of 35 million new ordinary shares also with a maximum value of €2, recognising the preferential subscription right for all shareholders.

“The full subscription of all of the capital increases will result in the inflow of approximately €105 million and the strengthening of Quabit’s own funds, which will undoubtedly help to boost growth and to generate value for shareholders over the medium term”, explained the President, Félix Abánades.

The director added that the property developer currently has 18 developments under construction with 1,655 homes up for sale, and is working on the commercial launch of another five developments: “We will finish the year with around 2,100 homes on the market”.

According to Abánades, with all of these land operations and the portfolio of assets already owned by the company, Quabit will own almost 1 million m2 of land for the development of more than 6,700 homes. 70% of those properties will be handed over between 2017 and 2021.

The most recent acquisitions include a portfolio comprising developable land in Corredor del Henares, owned by Grupo Rayet – the main shareholder of Quabit – with a joint investment of €30 million and a buildable surface area of 131,000 m2 for the construction of 970 homes. These plots are located next to land in Alovera (Guadalajara), where Grupo Rayet is planning to build Alovera Beach, a leisure park that will soon be home to the largest artificial urban beach in Europe.

Original story: Expansión

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