Forcadell Reports That Take-Up of Logistics Assets Up 33% Y-o-Y in Catalonia

8 November 2019 – Between July and September of this year, operators snapped up 132,509 square meters of logistics assets in the province of Catalonia, an increase of 33% year-on-year. Operators took up a total of 465,352 square meters of surface area in the first nine months of the year, comparable to the year before, according to a new report by the Spanish real estate consultancy Forcadell.

Prime logistics assets have provided an average yield of seven euros per square meter per month. Second and third-tier assets paid six and 3.5 euros, respectively.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Merlin to Invest €60MM in Logistics Platform for Carrefour

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

 

Renta Creates Linwork Properties Socimi to Invest in Logistics and Offices

29 June 2019

Linwork Properties, a newly incorporated socimi owned by the Renta Corporación, will focus its investments on the logistics and office sectors in Barcelona and ​​Madrid. The new socimi plans to invest a total of between 600 million and 1 billion euros. The firm is seeking a return of between 10% and 11% on equity of €300-500 million.

Linwork mandated the U.S. investment bank Btig to find 20 shareholders, giving Renta, the socimis sole manager, greater control over the vehicle.

Renta is also due to create another socimi, as yet unnamed, to invest in the hospitality sector. Linwork will buy assets located mainly on Mediterranean Spain, the Balearic Islands, the Canary Islands, Madrid and Barcelona.

Original Story: EjePrime – M.C.P.

Prologis Nears Acquisition of Colonial’s Logistics Portfolio

29 June 2019

Prologis is in the final stages of its attempt to acquire Colonial’s logistics assets. The socimi’s holdings include 12 logistics platforms and warehouses, with an estimated sales value of 450 million euros. The two firms expect to finalise the transaction during the coming month. Deutsche Asset Management and Blackstone had also been in the running to acquire the portfolio.

The principal asset in the portfolio is a 131,000-m2 logistics complex in the San Fernando industrial estate.

Original Story: Expansion

Allegra Looks to Sell Logistics Platform Nearby Amazon and Madrid

29 June 2019

The real estate group, Allegra Holding, is looking to take advantage of the substantially increased interest in e-commerce and its effect on the logistics industry to sell the Postremo project. Postremo comprises two warehouses in Villaverde, on the outskirts of Madrid, and a plot of land located in front of a facility owned by Amazon in San Fernando de Henares, just 30 kilometres from central Madrid.

Allegra mandated Knight Frank to lead the sale, which could raise 30 million euros, providing a return of approximately 5% to any potential buyer. The assets include two warehouses, with a total surface area of roughly 17,000 m2, which the logistics firm On Time is currently leasing. The 16,430-m2 plot of land has an approved project to build a 10,265-square-meter warehouse

Original Story: El Confidencial – Ruth Ugalde

Colonial Leaning Towards Blackstone in Sale of Logistics Portfolio

26 June 2019

The US fund Blackstone is reportedly leading the field of potential buyers for Colonial’s portfolio of logistics assets. The portfolio, whose sale would be one of the year’s largest, is said to be worth approximately €400 million. Colonial, a Spanish socimi, expects to finalise the transaction by late August.

Colonial is apparently leaning towards a sale to Blackstone due to its experience in the logistics sector, the financial guarantees the Americans are providing and its capacity to absorb such a large portfolio. Prologis, an American REIT, and Deutsche Bank are also vying for the assets.

Original Story: Merca2.es – Carlos Lospitao

 

Logistics Sector Booming in Spain

25 June 2019

The logistics sector in Spain is booming due to the public’s ever-growing use of e-commerce. Investments in the sector reached 2.4 billion euros last year. According to a report by Solvia, the real estate servicer recently acquired by Intrum, the sector grew by 20% between March 2018 and March 2019 as more than 7 million square meters of logistics spaces were taken on. Solvia also warned that supply is beginning to tighten in the larger Spanish cities.

The rental market for logistic assets is still strong as well. Rental income in Madrid and Barcelona is currently close to 5 and 6 euros per square meter, respectively. Profitability also remains high, with average gross return rates at 7.3%.

According to Solvia, Madrid, Barcelona, ​​Zaragoza and Valencia accounted for 50% of the sales of logistics assets in the last twelve months. Just in Madrid, buyers acquired more than one million square meters between March 2018 and March 2019.

Original Story: ABC – Guillermo Giné

JLL: Foreign Investment in Catalan Real Estate Rose by 137% in 2018

15 June 2019 – La Vanguardia

According to data published by the real estate consultancy JLL, overseas investment in the Catalan real estate sector rose by 137% during 2018, despite the fact that total investment fell from €1.13 billion in 2017 to €995 million in 2018.

In fact, domestic investment plummeted by 85% to €363 million from €859 million, but almost all of that decrease was offset by the arrival of funds from overseas. Of those, investment funds deposited 57% YoY more in 2018 (€574 million) and Socimis invested 47% YoY more (€326 million).

Having overcome the political uncertainty seen in 2017, international investors showed their commitment to Cataluña in general and Barcelona in particular, not least because the city has been declared as one of the world’s influencer cities by JLL.

In the business context, the city is particularly attractive for investment in the office, logistics and commercial sectors, ranking in first place in all 3 markets when compared with its European counterparts.

Specifically, the Catalan capital’s offices generate yields of 3.75%, whereby outperforming Milan (3.6%), London, Madrid and Stockholm (all 3.5%). Its logistics assets generate returns of 5.10%, compared with 5% in Madrid, and its shops in central locations generated yields of 3.25% in Q1 2019, compared with Madrid (3.15%) and Paris (2.75%).

All of this is welcome news for the region that has been hit hard by the political uncertainty of recent years.

Original story: La Vanguardia (by Pilar Blázquez)

Translation/Summary: Carmel Drake

Árima Makes its Logistics Debut with the Purchase of a Warehouse for €16.4M

7 May 2019 – Expansión

Árima Real Estate has made its debut in the logistics sector with the purchase of a warehouse spanning 26,000 m2 in San Agustín de Guadalix from an institutional fund for €16.4 million. The property is occupied in its entirety by the supermarket chain Eroski.

For the operation, the Socimi led by Luis Alfonso López Herrera-Oria, has been advised by Catella, EY Abogados and Savills Aguirre Newman as its real estate, legal and technical experts, respectively.

Following this operation, logistics assets account for 12.7% of Árima’s portfolio, with the remainder comprising offices in Madrid. The Socimi’s main shareholders include Bank of Montreal (10.4%); the British fund Pelham (9.984%); UBS (9.164%); Luis Alfonso López Herrera-Oria, (7.791%) and Morgan Stanley (5.122%).

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

INBISA Completed the Construction of Logistics Projects Spanning 330,000 m2 in 2018

8 April 2019 – Press Release

INBISA Construcción completed the construction of logistics projects spanning 330,000 m2 in 2018, up by 80,000 m2 YoY, and has already handed over more than 110,000 m2 of completed logistics space so far this year.

The strong boost in the logistics sector across the country has contributed to the company’s growth, with operators in the retail and e-commerce sectors demanding much of the new space, especially in Madrid and Cataluña.

INBISA Construcción offers a complete service across all phases of the logistics process, from asset construction to property management, providing solutions to each one of its clients’ needs.

In recent months, the company completed the development of the Puerta Centro de Guadalajara industrial estate, an innovative logistics centre for Montepino Logística, a leading property developer in Spain in the development of turnkey projects, and Luís Simões, one of the country’s leading logistics operators.

Original story: Press Release

Translation/Summary: Carmel Drake