Contracted Logistics Space Reaches 1.9-Million-m2 in the Year to September

21 October 2019 – The Spanish logistics sector allocated 1.19 million square meters in the year to September, a decrease of 14% compared to the year before. At the same time, however, investments increased by 16% to €1.302 billion, according to data from CBRE.

The allocation of logistics centre in downtown areas reached 432,000 square meters during the same period, a fall of 31% y-o-y. The market, however, reacted calmly to the decrease, as other transactions are expected to be finalised this year, according to the consultancy. Contracted space is expected to reach 600,000 square meters this year.

Rental costs continue to lead the market in Madrid and Catalonia, at 5.5 euros and 7 euros/m2/month, respectively.

Original Story: La Vanguardia / Europa Press

Adaptation/Translation: Richard D. K. Turner

LaSalle Investment Acquires Logistics Centre in Zaragoza for €20 Million

21 October 2019 – The pan-European real estate fund LaSalle Investment has acquired a logistics centre leased to Dia for more than 20 million euros from an undisclosed seller. The logistics centre, located in Zaragoza, has 31,000 m2 of surface area and was built in 2016. The supermarket chain will remain at the site.

The acquisition is not LaSalle Investment’s first foray into Spain’s logistics sector. In July, the firm acquired Metro Properties, a real estate subsidiary of Metro, consisting of a portfolio of six properties leased to Makro in Spain for 73 million euros.

Original Story: Idealista

Adaptation/Translation: Richard D. K. Turner

Two Plots of Land Sold in the Parc Sagunt Business Park

9 October 2019 – The logistics firm Lannutti España SL has acquired a 13,699-square-meter plot of land in Valencia’s Parc Sagunt for 1.38 million. The Italian group will develop a new logistics hub next to the Port of Sagunt, just north of Valencia, where it has an important client.

At the same time, the Valencian company Taberseo SA also acquired a 11,712-m2 plot of land in the same industrial park for €1.2 million. Taberseo distributes home, kitchen and table products and works with such clients as Alcampo, Carrefour, Makro and Dinosol.

Original Story: Levante – José Luis García

Adaptation/Translation: Richard D. K. Turner

Colonial Finalises the Sale of its Logistics Centers Worth €480M

14 June 2019 – La Vanguardia

Colonial is finalising the sale of a portfolio of 15 logistics centres worth €480 million that it inherited from Axiare. The assets span a surface area of 574,462 m2 and are located on the outskirts of Madrid, Barcelona and Sevilla.

The Socimi led by Pere Viñolas hopes to complete their sale within a maximum of two months as it seeks to take advantage of the strong demand for these types of assets thanks to the boom in online commerce.

Colonial’s core portfolio comprises office buildings located in the centres of Madrid, Barcelona and Paris, with a market value of around €11.4 billion. The firm is also working on fourteen new projects located in its three key markets, which have an associated investment of €1.3 billion.

At its recent General Shareholders’ Meeting, Colonial approved the appointment of two new independent directors and ratified the distribution of a dividend amounting to €0.20 gross per share, up by 11% YoY.

Original story: La Vanguardia 

Translation/Summary: Carmel Drake

Saltoki & Volvo Both Finalise Multi-Million Euro Investments in Valencia

1 March 2019 – Levante EMV

The Basque company Saltoki, dedicated to the distribution of plumbing and electrical equipment, is going to make an investment of between €20 million and €25 million in the Vara de Quart industrial estate, where it will create a large logistics centre, to take advantage of the proximity of the new facilities to the city of Valencia and its port. It is expected that 200 jobs will be generated thanks to this new infrastructure. Moreover (…), the automobile firm Volvo, is going to construct a large dealership in a new unique building that will be located in Campanar (…). The intention is that this large motor centre will open its doors at the end of 2019 (…).

Saltoki was created in 1978 and has 60 points of sale for plumbing and electrical equipment around Spain, as well as another four logistics centres. The Basque group inaugurated its first establishment in Valencia on 25 June 2018, in the town of Aldaia. That property is a large warehouse spanning 3,400 m2, which is located at number 15 Avenida Ovidi Montllor.

In terms of Volvo, the Swedish brand wants to reproduce in Valencia the experience that it has created in Aoyama (Tokyo) and Milan, where it has launched Volvo Studio Stores. There, the firm is offering a new dealership concept that has a cafeteria and which hosts a variety of events designed “to present the Swedish culture and philosophy of the Volvo brand to a wider audience”, according to the premium brand (…).

Original story: Levante EMV (by Josep Bartual Roig)

Translation: Carmel Drake

A Third of the León’s Business Land is Already Under Development

6 October 2018

Almost half of the land available in business parks and industrial states has already been sold, and less than 18% is still available.

A third of the land in León that is zoned for business uses is already currently under development, while almost half has already been sold and a little less than 18% is still waiting for economic initiatives. However, the occupancy of industrial land presents significant differences in saturation and demand between some industrial estate and others. The reduction in the price of some of these lands seems designed to encourage the installation of certain initiatives, though the preferences of employers are also clear when selecting a location, and they are not always related to the price.

In general, it has not been easy to absorb the “significant expansion of industrial land generated between 2004 and 2007 by all operators, which doubled their supply,” the Economic and Social Council of Castilla y León noted. This affects the excess land available in the industrial estates promoted by the municipality, whereby, on the whole, the Community tripled the supply of business land, “becoming the largest operator at the regional level, with more than a third of the total supply” in the market.

In the case of the province of León, that supply was added to the investment of mining funds in this type of infrastructure in the basins, which increased the available supply of land at a time when the financial crisis began to take hold. The result was that more than half of the industrial parks in the province have less than ten companies operating in them, and many of them have not managed to bring in a single tenant, according to an analysis carried out by the Association of Owners and Entrepreneurs of the Leon Industrial Estate. (Apepil).

According to CES, there has been a “strong push” in the sale of industrial land since 2016, which means that on average the occupancy rate in the Community has reached 60%.

This percentage has not been reached in the province, according to the data of the council the occupancy rate in the business land in the province is 49.5% (something more than seven million square meters); while almost 4.7 million are in the project phase, 33% of the total. The rest, just over 2.5 million, which accounts for less than 18% of the land, is still available.

In total, the province’s business land adds up to almost 19.6 million square meters and is the third largest supplier of infrastructure of this type of the Community, behind Valladolid and Burgos, which head the regional ranking. More than five million square meters are non-exploitable surfaces (green areas, roads, sidewalks, roundabouts, …).

In the case of León, the town councils that have developed most of the land for “industrial” use (though industries are not always installed); with more than 7 million square meters spread over 27 industrial estates. Initiatives by municipal and private capital add another seven industrial estates and almost another two million square meters.

The Institute of Business Competitiveness (ICE, former ADE) of Castilla y León, a subsidiary of the Junta, totals more than 4.7 million square meters, and more than one million of them are still available despite the price reduction of available land approved by the Junta more than two years ago, in April 2016.

The infrastructure developed by the private sector also have an important weight, almost three million square meters, of which only one million are occupied. The best performance was obtained by the state industrial land agency Sepes, which has almost 2.9 million square meters in its industrial estates in León, and an almost non-existent available area compared with the rest of the developers.

The CES noted that a year ago, the plenary session of the Cortes unanimously approved the promotion of the León Technology Park.

Original Story: Diário de León – María J. Muñiz

Photo: Ces. Ramiro

Translation: Richard Turner

Press Release: The first phase of construction is underway at Palm Logistics Madrid-Gavilanes

Phase I of this world class project comprises 33,000 sqm of lettable area and will offer flexible logistics modules ranging from 7,000 sqm, as well as bespoke purpose-built solutions.

This will be the first Spanish logistics development by London and Madrid based real estate investment firm Palm Capital, via its specialized arm Palm Logistics

CBRE will be the sole letting agent of this high quality and highly efficient project.

Palm Logistics Madrid-Gavilanes is situated in a strategic location thanks to its proximity to Madrid, the city’s main motorways and the airport.

Madrid, 3 August 2018 – The first phase of construction of Palm Logistics Madrid-Gavilanes is underway at Gavilanes Industrial Estate (Getafe), in the south of Madrid. Phase I of the project will include 33,000 sqm of lettable area – of a total of 115,000 sqm  – set on a 50,000 sqm plot, and will offer flexible logistics modules from a minimum of 7,000 sqm, right through to purpose-built solutions for large occupiers and operators with specialist requirements. This world leading project comprises two logistics properties featuring very high standards of quality, energy efficiency and sustainability and CBRE will be the sole letting agent.

“Palm Logistics Madrid-Gavilanes is an integrated development that will lead the way in providing innovative, efficient and sustainable solutions for a rapidly evolving Spanish logistics sector. In fact, the project is expected to be awarded a LEED Silver Certification, and will achieve energy savings close to 40% compared to competing sites, through various proprietary solutions”, explained Adrián Romero-Amich who recently joined Palm Capital’s Madrid office to spearhead logistics developments in Iberia.

This project will also meet the very strong tenant demand for logistics, particularly in the important South Madrid catchment area. Palm Logistics Madrid-Gavilanes offers modern facilities with wide roads and roundabouts adapted for heavy goods vehicles.

One of the project’s key factors is its location, given that the Gavilanes Industrial Estate is situated in the local coverage area -just 18 km from Madrid- and also provides national coverage, thanks to its easy access to the main motorways, its proximity to the airport and the Abroñigal intermodal station. These features have already helped to attract first-rate companies to the industrial estate, such as Amazon, Decathlon and Makro.

Spain’s industrial and logistics market is currently seeing significant growth and is highly sought after by national and international investors. In the words of Alberto Larrazábal, CBRE’s National Director of Industrial and Logistics, “The e-business and e-commerce domain is reinventing this real estate asset class and Palm Logistics, thanks to its unique location, quality infrastructure and access, is firmly establishing itself with the arrival of first-rate companies”.

Palm Logistics has also recently acquired a 28,135 sqm logistics platform in the Copenhagen Airport. Currently occupied by DHL and Postnord, the platform serves air cargo and logistics operators, thanks to its exclusive direct runway access. The property also has the potential for a 12,351 sqm extension.

Reda Khatim, managing partner at Palm Capital stated that “these two recent transactions demonstrate our firm commitment to the European logistics space and will form a key part of our Pan-European growth strategy in this sector.  We are definitely planning to grow further in the Spanish logistics market and are currently analyzing a number of very exciting investment opportunities.”


Town Hall of Madrid Approves Construction of 400 Homes on Land near Barajas

3 May 2018 – Eje Prime

The Town Hall of Madrid is promoting housing in the city. On Thursday, the Town Hall approved plans that will result in the construction of 400 homes, green spaces and other facilities on land owned by Iberia. The plots span a surface area of 54,600 m2 and are located in the district of Barajas, to the south of the Adolfo Suárez Madrid-Barajas airport; they are currently home to some warehouses, owned by the airline.

This land is going to be urbanised by Iberia so that it can be used for the construction of around 400 new homes, green spaces, other tertiary-use buildings and a private facility. The budget for the urbanisation work amounts to €5.1 million and the execution period is nine months.

Specifically, the plans involve eight plots spanning 54,600 m2, of which 23,507 m2 are destined for residential, tertiary and private facility use, whilst 31,093 m2 are earmarked for public use, including for green spaces, road networks, parking and facilities.

The Town Hall approved this project after the Ministry of Development announced an urban development macro-plan on some of Aena’s plots close to the airport, where hotels, logistics centres and offices are going to be built.

Original story: Eje Prime

Translation: Carmel Drake

Lidl Seeks RE Partners To Drive Growth

20 October 2016 – Expansión

Lidl is changing its expansion policy. Until now, the German chain has focused on opening supermarkets on the outskirts of urban centres. However, its new strategy will focus on identifying real estate partners to construct complexes that combine commercial and residential areas.

“We are looking for partners with whom, for example, we can open a shopping centre on the ground floor and construct apartments on the floors above”, explained David Carim, Director of Expansion at Lidl. The supermarket chain has a stand at the Barcelona Meeting Point real estate fair, which is being held from 19-23 October in the Catalan capital, to promote its strategy and look for new partners.

In this sense, the company is also offering itself as a partner to companies and funds that have unused plots of land, to develop projects together. It has not completed any of these initiatives in the Spanish market yet, but the strategy has already been applied in four shopping centres that the company manages in London. The formula will allow it to unify costs with the partners and access areas right in the heart of city centres.

Above all, Lidl is interested in plots of land measuring between 4,000 m2 and 9,000 m2, on which to build centres with a minimum surface area of 1,100 m2. The company is also looking for ground floor premises in towns with at least 16,000 inhabitants.

In addition, it is expected that this new expansion strategy will be applied to the construction of logistics centres, on plots of land measuring between 120,000 m2 and 140,000 m2.

Six hundred stores

Using this formula, the company plans to have 600 stores in less than five yers. The German chain already manages 535 supermarkets. In 2016 so far, Lidl has spent €350 million opening several new centres in Cornellà, Ripollet, Blanes, Sant Feliu and Roses (Cataluña), amongst others. The company plans to open another two new supermarkets in Badalona and Sant Boi, also in Cataluña, before February.

Lidl is not planning to create a real estate subsidiary even though it is looking to divest several of the premises and plots of land that it owns. Its owned assets include a plot of land measuring 65,815 m2 in Sant Fruitòs de Bages (Cataluña) and a 3,011 m2 farmhouse in the Catalan town of Arenys de Mar.

Lidl, which has invested €1,000 million in Spain over the last six years, is also focusing on redesigning its shopping centres. The paradigm of this new space is its centre in Ripollete, very close to the company’s central headquarters in Montcada i Reixach. The new supermarkets are characterised by their large windows, the installation of photovoltaic panels, which generate 30% of the stores’ energy, and the installation of bakeries in every supermarket.

Original story: Expansión (by Eric Galián)

Translation: Carmel Drake

Merlin & Metrovacesa Will Complete Their Merger Next Week

11 October 2016 – ABC

Next week, Merlin and Metrovacesa will finalise the merger that will give rise to the “new Merlin” – the largest real estate company in the country, with assets worth around €9,300 million. The entity will be listed on the Ibex 35 and Santander will be its largest shareholder.

“We will sign a notarial document to make the merger a reality between 20 and 23 October”, said the Chairman of the current company Merlin, Ismael Clemente, after speaking at a conference about “Brexit” organised by KPMG.

The two companies are currently finalising the integration of their management teams, personnel and property portfolios, said the man who will be the CEO of the new company, which will be chaired by Rodrigo Echenique.

Once the notarial document governing the merger has been signed, the existing company Metrovacesa will disappear, given that its office buildings and shopping centre assets will have been integrated into Merlin.

In exchange, the current shareholder banks of the real estate company will take shares in the new Merlin and will thereby become its key shareholders. Santander will be the largest shareholder of the new real estate group, with a 21.9% stake, followed by BBVA with a 6.4% stake and Banco Popular with 2.86% of the new shares.

In addition, the entities will retain their new stakes in the Socimi for the medium term at least, given that, in addition to signing a commitment to not sell their shares for six months after the merger, none of them has expressed any intention of divesting at all.

Iconic buildings

The new Merlin will begin life with a portfolio of office buildings, shopping centres and logistics centres with a combined surface area of more than 3 million sqm, worth around €9,317 million, which will generate revenues of €450 million per year.

This portfolio contains several iconic buildings, such as Torre Madrid and one of the four towers at the north of Paseo de la Castellana in Madrid.

By virtue of this operation, and in parallel to it, a new company Testa Residencial will be created, which will be the largest rental home company in the country. It will begin life with a portfolio of 4,700 homes for rent and Santander will also be its largest shareholder, with a 46% stake.

Clemente said that the firm has already filed a request to adopt a Socimi structure, with effect from 1 January 2016, with a view to analysing its eventual debut on the stock exchange.

With the final signing of the merger and the constitution of the two companies, the process that was launched in June, when the Socimi Merlin and the real estate company Metrovacesa first agreed to join forces, is now coming to an end.

Original story: ABC (by S.E.)

Translation: Carmel Drake