Aragón’s Logistics Sector Accounts For 5.5% The Region’s GDP

5 December 2016 – Inmodiario

So far during this legislature, the Government of Aragón has sold 500,000 m2 of land for logistics activities. The sector now employs around 40,000 people and accounts for 5.5% of the region’s GDP.

These figures were presented by the President of Aragón, Javier Lambán, during the VII Convention of ADEA-Aragón Directors. The forum noted that the Logistics Platform in Zaragoza is the largest in Spain and the fifth-largest in Europe and that the change in strategy adopted during this legislature is already generating results.

The new strategy is based on the creation of a new single brand “Aragón Logística”, involving the harmonisation of the supply of land from the various logistics platforms, which already account for 38% of Spain’s logistics space. It is also looking to consolidate Aragón’s relationships with all of its potential partners in the sector, which has resulted in improvements in the relationships with Cataluña, Navarra and Valencia.

On this basis, Aragón looks set to exceed all of its prior year export figures in 2016. During the first nine months of this year, Aragón exported goods with a value of €18,905 million to 164 countries, up by 2.1% compared with 2015 and up by almost 50% compared with ten years ago.

In terms of transport routes, 62% of goods were distributed by road, 16% by sea, 12% by rail and 10% by air. Aragón’s main clients include France, Germany, Italy, the United Kingdom, as well as China and the USA.

The President of the region is committed to diversifying the economy, and examples are already in place, with logistics clusters involving a large variety of transport companies, distribution centres and value added activities. (…).

Original story: Inmodiario

Translation: Carmel Drake

Axiare Buys 2 Logistics Warehouses For €14M

5 December 2015 – Valencia Plaza

Axiare has purchased two logistics warehouses, located in Madrid and Guadalajara, which have a combined surface area of 30,000 m2, for €14.2 million, according to a statement made by the Socimi, in which Colonial holds a stake.

Following this operation, logistics assets now account for 20% of the company’s total asset portfolio, which has a total surface area of 400,000 m2.

The warehouses are leased out and are located in the so-called Corredor de Henares, which is one of the key areas in the Spanish logistics market. One of them is located in Alcalá de Henares (Madrid) and the other one is located in Azuqueca de Henares (Guadalajara).

Original story: Valencia Plaza

Translation: Carmel Drake

Singapore Sovereign Fund Acquires P3 Logistics Parks

17 November 2016 – Expansión

GIC, the Singapore sovereign fund, is strongly committed to the European logistics sector. The investment group has just completed the acquisition of P3 Logistic Parks, one of the largest companies specialising in the logistics segment on the continent. The operation will be one of the largest transactions in the real estate market in Europe this year. GIC will pay €2,400 million in total to the funds TPG Real Estate and Ivanhoe Cambridge, which purchased P3 in 2013.

With this purchase, GIC is entering the Spanish logistics sector with a bang, given that P3 Logistics Parks owns 80,000 m2 of storage space in the country, spread over five assets. Specifically, the group owns one platform in Abrera (Barcelona), another one in Pedrola (Zaragoza) and three in the central region: in Valdemoro (Madrid), Alovera and Fontanar (Guadalajara). Its clients are major transportation companies, which lease all of the available surface area.

In total, P3, which is headquartered in Prague, controls logistics platforms with a combined surface area of 3.3 million m2, across Europe. Since TPG acquired the company three years ago, the firm has doubled in size through acquisitions, and now has a network of 163 logistics centres, located in 62 cities across nine European countries.

This year, P3 has completed a long-term debt financing process worth €1,400 million, with the aim of strengthening its growth strategy and securing some financial breathing room.

GIC’s challenge is to drive a new expansion phase to take advantage of the international boom in the logistics sector, driven in large part by the increase in online commerce. For this, P3 owns a portfolio of land on which it could build an additional 1.4 million m2 of logistics space.

New developments

In fact, the logistics park operator is already building eleven new complexes, which will generate 300,000 m2 of additional space over the next few months.

“We are delighted to have one of the most important sovereign funds in the world as our partner; GIC’s long-term investment strategy is very much aligned with our vision to build high quality assets and be long-term owners”, said Ian Worboys, CEO of P3.

Original story: Expansión (by S. Saborit)

Translation: Carmel Drake

Merlin Consolidates Assets Following Merger With Metrovacesa

21 October 2016 – Expansión

Merlin Properties is entering a new phase. After completing the merger with Metrovacesa, the Socimi wants to initiate a new phase of asset consolidation. “Our goal is to not grow any larger”, said Ismael Clemente (pictured above), Chairman of the firm, speaking yesterday at the Barcelona Meeting Point real estate fair, which is being held from 19-23 October in the Catalan capital.

This new phase is looking for a soft landing following the merger with Metrovacesa. The primary objective of this process is to increase the value of the assets in Merlin’s portfolio. To this end, capital investments will be made in offices and in other assets owned by the Socimi.

Clemente also confirmed that 75% of Merlin’s offices are more than 10 years old and that the consolidation will be based on improving these spaces, in accordance with the new upwards cycle in the sector, which is leading to price rises and improved facilities. The recovery in the value of offices, above all in Madrid and Barcelona, is “just in its first phase”, said Clemente.

The Director said he was confident in the opportunities being offered in this segment compared with the situation in other European markets – such as the German, French and British markets – where prices are more mature. Even so, the Chairman of Merlin thinks that Spain is still a secondary country within the European real estate sector, given the insufficient legal security here and the lower presence of overseas investment compared with other markets across the Continent.

The merger with Metrovacesa is expected to be definitively formalised this month, following the payment of a €60 million dividend on 25 October, which was approved in a Board Meeting held last Wednesday.

Clemente regards the logistics sector as one of the best positioned in terms of investment following the downturn it suffered during the economic crisis. “Historically, the logistics sector has been undeveloped in Spain”, said the Chairman of Merlin.

Nevertheless, the recovery and development of online commerce is allowing the logistics sector to return to pre-crisis levels. Merlin considers that there are few investment opportunities left in the shopping centre segment and that only shopping macro-complexes, with flexible legislation, will offer the right conditions for investment.

Meanwhile, Clemente said that the disputes over forming the new government, and the nationalist tensions “have both gone too far”.

The merger with Metrovacesa will turn Merlin into the largest real estate company in Spain, with assets worth more than €9,000 million. The Socimi generated profits of €211 million during the first half of the year, up by 77% compared with the same period in 2015.

Original story: Expansión (by Eric Galián)

Translation: Carmel Drake

C&W: Retail Rents Rise By 2% In MAD & BCN

17 August 2016 – Expansión

The recovery of the Spanish economy is causing demand for retail premises on the main streets of Madrid and Barcelona to increase, according to the latest quarterly Spain Country Snapshots report published yesterday by the advisor Cushman & Wakefield.

The real estate services company indicates that, taking into account the lack of available space in the prime areas of both cities, it is noteworthy that tenants are willing to pay higher rents in order to retain good locations.

The report also states that whilst rental prices have stabilised in the retail sector in general, they have increased by 1.9% in the prime areas of Madrid over the last year.

In addition, the report forecasts the opening of approximately 340,000 sqm of space dedicated to retail during the second half of the year across Spain. The new space will mainly be concentrated in three new shopping centres.

Good figures

Meanwhile, in the logistics market, Barcelona has reported some “outstanding” figures in terms of the leasing of space thanks, primarily, to the long-term project involving the implementation of Amazon’s logistics plant in Prat de Llobregat.

With this space, which measures 60,000 sqm, the city saw 161,000 sqm of space leased during the second quarter of 2016. The figure is similar to that reported in the same period in 2015 but contrasts with the 34,000 sqm of space leased in Madrid, according to data from the agency.

Cushman & Wakefield said that the forecast growth of the economy will have a positive impact on occupancy rates over the coming months.

In addition, it expects several operations to be signed before year end, after they were delayed from Q2.

Original story: Expansión

Translation: Carmel Drake

Aguirre Newman: Logistics Inv’t Totalled €413M In H1

4 August 2016 – Mis Naves

Investment in the logistics sector amounted to €413 million during the first half of 2016, a similar figure to the one recorded during the same period last year, according to the conclusions of the Logistics Market Report for H1 2016, a study conducted by the real estate consultancy Aguirre Newman. The report explains that fewer operations have taken place during this time period, but those that have been completed have been larger (in value), including the portfolio sales undertaken by Gran Europa and Zaphir Logistics.

Almost all of the profitable investments have been made in the prime markets, Madrid and Barcelona, which together accounted for 80% of the total volume bought and sold. In addition, as a result of the product shortage, investor interest is starting to move to focus on secondary markets, such as Valencia, Zaragoza, Sevilla and Pamplona.

Demand for logistics space in Madrid during the second quarter of the year decreased by 76.3% with respect to the previous quarter (Q1 2016), with just 34,233 sqm of space leased. The most significant operations, of which there were seven in total, took place in Cabanillas del Campo and Coslada, which accounted for 45% of the total space leased.

The highest rental incomes recorded in Q2 amounted to €5/sqm/month and the rents in the prime areas remained stable at between €4.5/sqm/month and €5/sqm/month, as a result of the scarcity of operations completed.

According to the report, despite the low demand for logistics space, demand for industrial assets has been dynamic with 30 operations closed during the period, corresponding to 80,829 sqm of space, half in the rental segment. In terms of sales transactions, 63.6% related to spaces measuring less than 1,000 sqm. This data indicates an improvement in terms of demand in the industrial market, with a high number of low volume operations.

Just like in previous quarters, there was a high level of activity in the market for land dedicated to industrial/logistics use, a clear indicator of the return to property developer activity and the recovery of the sector. Six operations involving land were closed both for end clients and for development through new projects. They included the purchase of more than 160,000 sqm of land in Illescas (Toledo).

In Barcelona, during Q2 2016, demand for logistics space was very positive, reaching 160,469 sqm, a very similar figure to the one recorded during the same period in 2015 and almost 80% higher than during the first quarter of 2016.

During this period, 11 operations were closed, of which four involved spaces exceeding 10,000 sqm, accounting for more than 85% of the total space leased, which focused primarily on the regions of Baix Llobregat and Tarragonès.

In terms of the most significant operations by surface area leased in Q2 2016, Aguirre Newman’s report highlights the operation closed by Amazon in Prat de Llobregat covering 60,000 sqm on the ground floor. On the other hand, in the region of Tarragonès, an operation involving 42,250 sqm of land was closed to provide services to Amazon in the performance of its activity. These two operations accounted for 64% of the total space transacted. (…).

Original story: Mis Naves

Translation: Carmel Drake

Prologis Buys Land In Valencia To Build 2 Logistics Warehouses

4 August 2016 – Mis Naves

Prologis Inc. has acquired land measuring 70,000 sqm in Valencia.

Prologis will build two leasable logistics buildings, measuring 23,000 sqm each, on the land and expects to begin construction during the third quarter of this year.

The land is located in the PLV de Ribarroja de Túria, a ideal location for the implementation of logistics activity. The two new properties will have cutting-edge facilities, including a minimum storage height of 11m, allowing them to increase storage volumes by 20% compared to a standard warehouse.

In addition, the warehouses will be equipped with LED lighting in the storerooms and offices, which will result in savings of around 40% in terms of electricity consumption, as well as the most efficient fire prevention system in the market.

“Our idea is to offer our clients a high quality product, based on design and efficiency, that highlights all of the features currently being offered in the logistics real estate market in Valencia”, said Cristian Oller, Director of Development and Projects at Prologis in Spain. “For us, this represents an interesting challenge to put into practice our model for the development of new buildings in a market as important for the logistics sector as Valencia”.

“We are very proud to return to Valencia and to start new developments in this market, which is becoming increasingly important in the logstics sector in Spain and Southern Europe”, said Gustavo Cardozo, Senior Vice-President at Prologis Iberia. “Our strategy for the next few years involves growing our business in Valencia and consolidating our position as a supplier of cutting-edge logistics warehouses in this market”.

The real estate consultancy Inmoking Real Estate was responsible for advising this operation. The marketing of the properties will be carried out jointly by the real estate agencies Inmoking Real Estate and BNP Paribas Real Estate.

Original story: Mis Naves

Translation: Carmel Drake

BNP: Inv’t In Logistics Assets Reached €662M In 2015

8 June 2016 – Mis Naves

According to the real estate consultancy firm, BNP Paribas, “2015 was an exceptional year” for the logistics sector in Spain, with total investment amounting to €662 million, whereby exceeding the figure recorded in the previous year to register the highest investment volume in the last eleven years.

The data available for 2016, corresponding to the first quarter, confirms this rising trend, with total investment exceeding €320 million between January and March 2016 – this figure essentially relates to three large portfolios: Metrovacesa, Zaphir and Prologis.

For the analysts at BNP Paribas Real Estate, the good performance of consumption and industrial output, which began three years ago, has continued to boost the logistics market in 2015 and so far in 2016. Moreover, the shortage of high quality products has led to a slight increase in income and above all, to a stabilisation of prices. Thanks to the availability of land, new developments may go on the market at these rental prices. For this reason, the consultancy considers that 2016 offers good opportunities for buying and selling logistics assets.

It is worth highlighting two key milestones that are shaping the evolution of the logistics real estate sector and boosting the strong outlook for this sector.

On the one hand, 2014 and 2015 were the years when the highest ever investments were made in logistics warehouses. More than 50% of the high quality logistics warehouses changed hands during that period. The market saw a generational change in owners, with the disappearance of some and the appearance of others. The latter group includes international investors, which have been positioning themselves in the market, including several specialists, such as Prologis, which have strengthened their positioning; and the Socimis, which have secured capital overseas and invested it in this segment to create significant portfolios of logistics warehouses. During the first quarter of 2016, the main Socimis and funds interested in logistics assets invested around €320 million.

On the other hand, consumer habits have changed with the crisis, which has led to a very significant increase in the volume of purchases made online, to the detriment of in-store shopping. In this vein, e-commerce is growing at an average rate of 20% p.a.. To the extent that the volume of purchases made online increases, so too does demand for logistics spaces designed to provide support for these types of businesses. In 2015, around 17,000 sqm of logistics space was leased for e-commerce use. Even so, in Spain, online shopping accounts for just 3% of overall consumption, which reflects the potential for growth in the country, above all if we compare it with other markets such as Germany and the UK, where e-commerce accounts for 10% and 13.5% of all shopping, respectively. (…).

During 2016, consumption is expected to continue to grow with the same energy, along with the leasing of logistics space. Income will continue to increase and yields will continue to decrease due to the shortage of high quality logistics products. The e-commerce business will grow and so too will demand for cross-docking and XXL warehouses. The main Socimis and funds will continue to expand their portfolios with logistics assets. (…).

Original story: Mis Naves

Translation: Carmel Drake

Blackstone Owns c.5% Of Spain’s Logistics Assets

28 June 2016 – Expansión

Blackstone created Logicor in 2012 and since then, has grown the company by acquiring portfolios of logistics assets, to reach its current surface area coverage of 13 million sqm.

In Spain, Logicor has been purchasing assets for three years and now owns properties covering a total surface area of 1.1 million sqm, primarily in Madrid and Barcelona, making it the largest owner of logistics land in the country, with a market share of between 5% and 7%. It is followed in the ranking by Merlin Properties and Prologis, in an otherwise very fragmented sector.

Logicor’s Director General for Southern Europe, Manel Vericat, said that the company is still looking for logistics warehouses in Madrid and Barcelona, as well as in other cities, such as Valencia and Pamplona: “We are searching for products that have may potential thanks to the management of our team; and we are able to participate in operations that have higher risk because we have experience in this segment and are capable of managing these situations.

The Spanish subsidiary is led by Alejando Rumayor, who previously worked for Aguirre Newman, Iberdrola Inmobiliaria, ING Reim and CBRE, where he worked last before joining Logicor. The team in Barcelona is led by Xavier Novell, who joined the firm from Aguirre Newman, where he led the logistics and industrial department for the last decade.

In recent years, Logicor has made some major investments in Spain, such as the purchase of a portfolio of logistics assets from CBRE Global Investments, which covered a surface area of 78,000 sqm.

It also acquired a batch of logistics warehouses covering 106,000 sqm, from the French insurance company Axa.

Similarly, it purchased a batch of logistics assets from Gran Europa with a combined surface area of 319,000 sqm. And another one from SEP investments, measuring 138,000 sqm. Finally, one of its most important acquisitions at the global level involved a batch of warehouses from General Electric, of which around 348,000 sqm were located in Spain.


Vericat confirmed that, since last year, rents in the logistics sector have recovered in Barcelona. In Madrid, “we have not detected any increases yet, but certain rent incentives have disappeared, such as grace periods.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake

ID Logistics Buys Logiters From Corpfin Capital For €85M

28 June 2016 – Expansión

The multinational logistics space management company ID Logistics has purchased Logiters, manager of logistics surface areas and owner of warehouses in Spain and Portugal. The company, which was owned by the private equity fund Corpfin Capital, has been valued at €85 million.

Logiters manages 50 logistics warehouses, with capacity of more than 750,000 sqm, spread across different locations in Spain and Portugal. In 2015, it recorded revenues of €250 million and closed the year with a workforce of 3,300 employees.

The aim of ID Logistics is to strengthen its presence in these two markets, as well as to grow in the sectors in which Logiters is very specialised, such as pharmaceutical and automotive logistics.

Following this acquisition, ID Logistics also strengthens its position in Europe, which accounts for 82% of its business. The operation is subject to approval by Spain’s National Commission for Markets and Competition.

The buyer

ID Logistics owns more than 200 platforms across fourteen countries, representing a combined warehouse surface area of more than 4.3 million sqm in Europe, Latin America, Africa and Asia. The company employs 15,000 people in total.

Meanwhile, Corpfin Capital is an independent private equity firm that focuses on the local and international expansion of Spanish SMEs. It took control of Logiters two years ago.

According to Álvaro Olivares, Partner at Corpfin Capital, “over the last two years, we have accompanied Logiters through a major recovery process”. And he added that now, “under the management of ID Logistics, the company will be capable of realising its full growth potential”.

Original story: Expansión (by M. A.)

Translation: Carmel Drake