C&W: More Than 300,000 m2 of Logistics Space was Leased in Q1 2019

5 April 2019 – Eje Prime

According to a report published by Cushman & Wakefield, the volume of logistics space leased in Barcelona rose by 21% YoY in Q1 2019 to 227,000 m2. Meanwhile, in Madrid, 73,700 m2 of logistics space was contracted during the first quarter.

According to the consultancy firm, fifteen operations were closed in the Catalan capital during the first three months of the year and rents rose to €6.75/m2. Moreover, in Madrid, rents continued their gradual increase to reach €5.25/m2 in prime areas.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

CBRE: 100,000 m2 of Logistics Space was Leased in Zaragoza in 2018

12 March 2019 – Eje Prime

According to data from CBRE, 100,000 m2 of logistics space was leased in Zaragoza in 2018, up by 10,000 m2 compared to 2017. Most of the space was  absorbed by turnkey projects, and the majority of the new contracts were signed for spaces released by companies relocating to new sites.

The largest operation of the year involved the sale of two plots spanning 40,000 m2 on the Plaza industrial estate.

Demand is expected to remain active this year, right across Spain, boosted, in particular, by the emergence of e-commerce, which will continue to drive demand for urban hubs spanning between 3,000 m2 and 5,000 m2.

Original story: Eje Prime

Translation/Summary: Carmel Drake

C&W: Investment in High Street Premises Soared by 70% in 2018 to €1.7bn

6 March 2019 – Eje Prime

According to the latest edition of Cushman & Wakefield’s Investment Insight report, investment in high street assets in Spain soared by 70% in 2018 to reach €1.7 billion. In total, 52 operations were closed last year, accounting for 38% of all investments in commercial assets. The fashion and banking sectors accounted for the most deals.

Meanwhile, 32 operations were closed in the shopping centre segment, where the total investment amounted to almost €1.9 billion, down by 25% compared to 2017. In addition, 7 retail parks were sold last year for €236 million.

In the office sector, investment rose by 29% YoY in 2018 to reach €3.1 billion, with Madrid accounting for 66% of that total (€2.1 billion) and Barcelona accounting for 31% (€950 million).

In the logistics sector, e-commerce drove a sharp increase in investment to reach €1.2 billion, with 890,000 m2 of logistics space leased in Madrid and 345,000 m2 in Barcelona.

In terms of alternative assets, investment in student halls amounted to €220 million in 2018, whilst investment in nursing homes leapt to €281 million.

Original story: Eje Prime

Translation: Carmel Drake

Conforama to Build a 60,000 m2 Logistics Centre in Valencia

16 January 2019 -Eje Prime

A new operation in the Valencian logistics sector. The furniture and household good distribution company Conforama is going to build a 60,000 m2 logistics centre on the Carrasses Industrial Estate in the Valencian municipality of Llíria, according to Efe.

The asset is going to be located on a plot measuring 80,000 m2, which will also include an administrative building. Moreover, with this investment and according to the town hall of the municipality, 30% of the industrial estate’s surface area will be occupied within three years.

This operation forms part of the French company’s expansion strategy. It owns assets located across the Iberian Peninsula, as well as in Italy, Croatia, Luxembourg, Switzerland and Serbia. In Spain, it has 37 stores and it plans to grow that figure to 50 over the coming years.

Original story: Eje Prime

Translation: Carmel Drake

Montepino Buys a 22,900 m2 Logistics Plot in Barcelona

27 November 2018 – Eje Prime

Montepino is on a roll in Spain. The property developer, which specialises in turnkey solutions, has acquired a plot measuring 22,914 m2 on the Can Serra industrial estate in the town of Sant Esteve de Sesrovires, in a deal that represents its first operation in Cataluña.

With the purchase of this plot, for which Montepino has been advised by Cushman&Wakefield, the group will have the capacity to develop a warehouse for logistics or automotive use spanning more than 13,000 m2.

The land is located in a strategic enclave, close to Barcelona and with direct access to the AP-7 and A-2 motorways, which link the French border with Levante and Barcelona with the centre of the Peninsula.

“It is our first investment in Cataluña, where we expect to be able to expand our portfolio of properties with more projects of this kind to create one-off spaces that are fully adapted to the needs of our clients”, said Juan José Vera, Vice-President of Montepino Logística, in a statement.

Currently, the company is developing five projects in Madrid and Castilla-La Mancha, which span a combined surface area in terms of logistics space of more than 300,000 m2 and with an asset valuation that exceeds €300 million.

Original story: Eje Prime

Translation: Carmel Drake

VGP Invests €25M in a New Logistics Park (80,000 m2) in Madrid

25 July 2018 – Eje Prime

VGP is going to build a new logistics park in the south of Madrid. The investment group is going to spend €25 million on the development of a macro-project on a plot of land measuring 80,000 m2 in Fuenlabrada. The buildability of the plot is 50,000 m2, according to reports by the company.

The logistics company has acquired a plot on the Callfersa Industrial Estate to expand the supply in the second ring of Madrid. In Fuenlabrada, there is currently 81,000 m2 of industrial surface area, which is fully occupied. Therefore, VGP’s operation, which has been advised by JLL, will double the stock of logistics land in the town.

VGP’s investment “will provide a solution to the lack of supply in the second ring of Madrid”, explains Pere Morcillo, Director of the Industrial and Logistics Area at JLL, who warns that companies “were finding hardly any available space in the area, especially if you take into account that VGP’s project is the only development that is planned in the area”.

During 2017, 800,253 m2 of logistics space was leased in Madrid; and this year, 850,000 m2 of logistics space is expected to be leased, according to data from CBRE. That firm highlights the areas around the A-2, A-1, A-4 and A-42 motorways as those with the most space to let.

Original story: Eje Prime

Translation: Carmel Drake

UPS to Open Operations Centre for Southern Europe in Barcelona

8 July 2018 – Eje Prime

UPS is increasing its commitment to Barcelona. The parcel sector multinational is going to open its operations centre for Southern Europen in the Catalan capital. The company will open a logistics space spanning 60,000 m2 in the Zona Franca area and will leave the site that it currently occupies in L’Hospitalet de Llobregat.

The US giant is undertaking this investment shortly after its German competitor DHL decided to expand its presence in Barcelona with a new centre measuring almost 3,000 m2 in Castellbisbal, according to reports from TV3.

The site in Castellbisbal is going to become DHL’s third centre in the Catalan capital, where it already has a presence at Barcelona Airport and in the Zona Franca area, where it will now have UPS as a new neighbour. The aim of the German company is to begin the building work this year so that the space can be inaugurated in the summer of 2019.

The strength of the e-commerce sector is proving to be key to the increase in logistics leasing in Cataluña, where the market has grown by 70% during the six months to June, according to data from the consultancy firms Cushman&Wakefield and Savills Aguirre Newman.

Original story: Eje Prime

Translation: Carmel Drake

Protecmed Buys a 1,300m2 Logistics Warehouse on Outskirts of Barcelona

14 May 2018 – Eje Prime

Protecmed is strengthening its logistics presence in Barcelona with a new warehouse. The engineering firm has acquired an industrial complex with a total surface area of 1,309 m2 and an outdoor patio area measuring 600 m2 on the El Plà de Bruguera industrial estate, located in Castellar del Vallès, according to a statement issued by the company.

The environmental engineering company, which specialises in solutions for treating drinking water and wastewater, has strengthened its presence on the outskirts of Barcelona with this purchase. Nevertheless, the company, which is undergoing an internationalisation process with projects around Europe, as well as in South America and North Africa, has established its headquarters in Sant Cugat del Vallès.

Located forty kilometres from Barcelona, Protecmed’s new warehouse represents another yet investment in the logistics market in the Catalan capital. During the first quarter of 2018, logistics absorption grew by 50% in Barcelona, with 185,982 m2 of space leased in total, according to data from the consultancy firm Forcadell. 

Original story: Eje Prime

Translation: Carmel Drake

Merlin to Spend €250M Developing New Logistics Assets

8 May 2018 – Expansión 

The Socimi Merlin plans to spend €250 million launching new logistics assets over the next four years. “We are continuing with our ambitious expansion plan, primarily through the development of land and the construction of turnkey projects”, said Merlin’s CEO, Ismael Clemente (pictured below), speaking yesterday at the company’s General Shareholders’ Meeting.

The director explained that Merlin is going to add another 500,000 m2 of space to its existing portfolio to exceed “by far and in record time” the 2 million m2 of logistics space that it currently manages. “That will place us in a clear position of leadership with respect to our competitors”, he said.

This investment will be made in addition to the €370 million that the real estate company is going to use to reform and reposition its portfolio of offices and shopping centres.

Clemente explained that the intense investment activity in which Merlin has been immersed since its creation was obeying a “strategic vision”. “We were living through the start of the upward trend of a new real estate cycle and there was a window of opportunity open to buy some very high-quality assets and companies at very attractive prices. That quality and those prices will not be seen again until the next cycle comes around”, he said.

The director reiterated the “outstanding” return to shareholders of 21.6% in 2017. In this sense, yesterday, the shareholders approved a 9% increase in the dividend, to be charged against the results for 2018, to reach €235 million.

Clemente also revealed that his firm will be looking carefully at the real estate plans designed by Aena for the airports in Barajas and El Prat. Aena is planning to market 2.7 million m2 of buildable space for logistics, hotel and office use on land that it owns at the Adolfo Suárez Madrid-Barajas airport and another 1.85 million m2 of land at Barcelona-El Prat airport.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Spain’s First Logistics Megahub will Open in Antequera (Málaga) in 2019

19 April 2018 – Cinco Días

The first logistics megahub in Spain is starting to become a reality almost a decade after it was initially proposed. The entity known as Megahub Andalucía – a public-private initiative – has engaged the consultancy firm CBRE to search for the first major operators ahead of the imminent authorisation of the project that the Junta de Andalucía is expected to grant in June. At stake is €350 million of investment in an industrial hub for the south of Spain and north of Africa, which should be ready by 2019.

Megahub Andalucía is located in the municipality of Antequera (Málaga), in what the European Union calls a multi-modal hub, given that the European Atlantic and Mediterranean railway and road goods corridors meet at this point, the ports of Algeciras, Málaga and Sevilla are all close by, as is the AVE station in Antequera and the airport of Málaga (the fourth largest for cargo transport in Spain).

“Megahub Andalucía is located in the centre of Andalucía with respect to the large populations, both in terms of consumption and production”, says Ramón Vázquez, head of the project at CBRE. The word hub is used because several European transport networks converge on this point and the pre-fix mega has been added, in turn, because the warehouses that are going to be constructed on the plots will extend up to 200,000 m2.

The Junta de Andalucía holds a 40% stake in the company, through Red Logística de Andalucía, and the remaining 60% is held by a private company Puerto Seco de Antequera, which comprises, in turn, several companies, most notably Acotral, a local operator that has been an integrated supplier of Mercadona since 2003.

The Junta is expected to approve the special plan in June, which will allow work to start of the urbanisation of the area, after many years of delays. “The project was launched 10 years ago but has been delayed on several occasions due to urban development problems and due to the crisis. It was conceived as a logistics area and is now being reborn as a logistics megahub”, says the expert at CBRE.

The urbanisation work may begin in June and will have an estimated cost of €70 million, which will be funded by the Junta and the company Puerto Seco de Antequera. Later, around €280 million of funding will be received from investors and operators to build the macro logistics warehouses and production centres. In theory, the megahub should be operational by the end of 2019 or beginning of 2020.

The logistics hub in Antequera spans 3.3 million m2, of which 1.03 million m2 is going to correspond to logistics warehouses. There will also be an industrial park, destined to production activities, measuring 919,000 m2, plus a service centre (comprising a hotel, restaurant, training centre, businesses…) spanning 317,000 m2 and finally a railway terminal, which will connect with the goods station in Bobadilla (owned by Adif).

The project coincides with the huge boom that the logistics market is sparking in Spain, due to the reactivation of the economy, the pull from e-commerce and the needs of the major operators such as Amazon. Last year, more than 1.5 million m2 of logistics space was leased, according to data from CBRE, up by almost 20% (…).

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation: Carmel Drake