Jevaso Buys 41,000 m2 Plot in Zaragoza from Porcelanosa for €10M

30 May 2018 – Eje Prime

Real estate operation in the logistical heart of Spain. The logistics operator Jevaso, which works for groups such as Inditex, has acquired a plot of land measuring 41,000 m2 in the Logistics Platform of Zaragoza (Plaza), which had belonged to Porcelanosa until now. The company has disbursed ten million euros for the land and will invest another €3 million on the renovation and expansion of the warehouse, which will span 13,000 m2.

Following the construction work, which will be completed in August, Jevaso’s facilities in Zaragoza will span 25,000 m2. Porcelanosa acquired the plot in 2005 and invested €22 million in the project.

Jevaso is going to use these facilities primarily for returns, ironing and drop-shipping, and initially, its main client is going to be Inditex. Over the medium term, the company plans to add another 12,000 m2 of space. Jevaso has three other warehouses, one that it owns and two that it leases. The aim of the group is to centralise its operations on the new site and hold onto just one of the existing assets, which is connected with Inditex.

At the end of last year, the company acquired another plot measuring 25,600 m2 in Meco (Madrid) with a warehouse spanning 9,000 m2 for €5 million. The group has budgeted an investment of €1 million for that renovation and is considering expanding it to 48,900 m2 over the medium-long term. Jevaso’s new site in Madrid is just 300 m away from the former, located close to Inditex’s operations.

In the cases of both Zaragoza and Madrid, the plots still have scope for more construction, whilst in A Coruña, the group has had to grow with new independent warehouses that have a surface area of 103,000 m2.

In total, Jevaso has six plants in A Coruña, Zaragoza, Madrid, Parets del Vallès (Barcelona) and Braga spanning 200,000 m2. The group employs more than 1,500 workers, moves 120 million garments per year and irons up to 350,000 pieces of clothing a day. The group generates revenue of around €60 million and expects to grow by between 10% and 15% this year.

Jevaso’s history dates back to 1983. Jesús Vázquez, whose family also worked in the textile industry, started his professional career in Samlor, one of Amancio Ortega’s first companies. In the beginning, Jevaso was a clothes manufacturing company dedicated to serving large Galician businesses, which expanded to offer ironing and labelling services. With the industrial relocation, the company turned its business on its head and integrated the logistics activity.

Original story: Eje Prime (by P. Riaño & I. P. Gestal)

Translation: Carmel Drake

Aguirre Newman: Logistics Demand Soars By 23% In Madrid & Barcelona

17 October 2017 – Eje Prime

Demand for logistics space in Madrid and Barcelona is on the rise. During the first three quarters of 2017, 929,698 m2 of logistics space was leased, which represented an increase of 22.6% compared to the volume leased during the same period in 2016, according to data released by the Logistics Market Monitor for Madrid and Barcelona 2017, compiled by the real estate consultancy firm Aguirre Newman.

The volume of investment reached €600 million (during the 9 months to September 2017), which accounts for 76% of the total recorded during the whole of last year. That figure, in turn, represented a historical maximum in terms of investment volumes in Spain.

“The high level of investment activity in logistics assets that began four years ago continued during the third quarter of 2017. It was boosted by factors such as the consolidation of economic growth, the gradual improvement in consumption by households, rising rental prices in the main markets and an improvement in financing conditions”, say sources at the consultancy firm.

By market, demand for logistics space in Madrid during the third quarter of 2017 amounted to 226,757 m2, which took the total cumulative volume of space leased so far in 2017 to 614,070 m2, up by 52% compared to the same period last year.

The most significant operation, in terms of the volume of space leased during the third quarter, was closed in Illescas (Toledo), where a turnkey operation was signed involving a space measuring 103,000m2. It was followed by another operation in Meco involving a logistics space measuring 59,914 m2.

In terms of rental prices, the maximum reached has been €4.85/m2/month, as a result of an operation closed in the Corredor del Henares, specifically, in San Fernando.

“Activity in the market for land with logistics and industrial use has grown considerably with respect to previous quarters, given that seven operations have been signed, involving a combined surface area of 379,096 m2 (…)”, say sources at the consultancy firm.

In Barcelona, 91,406 m2 of logistics space was leased during the third quarter, which represented a slight decrease (of 9%) compared to the same period in 2016. Meanwhile, the total cumulative space leased during the first nine months of the year amounted to 315,628 m2.

Prime rental prices in the Catalan capital continue to range between €5.75/m2/month and €6.75/m2/month. Nevertheless, Aguirre Newman’s report highlights that one operation was closed in the Zona Franca Consortium for a rental price that exceeds the prime rent.

Original story: Eje Prime

Translation: Carmel Drake

Cifuentes To Value Plot Next To Inditex’s Facilities In Meco At c. €100/m2

23 January 2017 – El Confidencial

Around €100/m2. That is the valuation that Nuevo Arpegio, the public company that manages land in the Community of Madrid, is going to assign to the plot that it owns in the town of Meco, next to Inditex’s large logistics centre. The Galician company has already expressed its interest in operating on the adjacent site. The regional Government, chaired by Cristina Cifuentes, approved the partial modification of the urban plans for Meco in December, which was necessary to reorganise the 1.93 million m2 space and protect the wetland containing protected birds that has been artificially created in the area.

Having taken this step, Nuevo Arpegio is now finalising the process to sell a plot measuring 100,000 m2, which according to sources in the autonomous government, could have an asking price of €10 million. The plot is the ideal site for the Galician company to expand its facilities, which already occupy 300,000,m2 next door. Inditex has been expressing interest in this plot since 2014, although officially it has not revealed its cards. Meanwhile, Nuevo Arpegio wants to generate revenues in every way it can and is putting a large volume of land up for sale across the Community of Madrid. (…).

Sources in the real estate sector indicate that, in theory, offering the land for an asking price of €100/m2 would represent an “attractive” offer, although urbanisation costs would cause the price to rise to €130/m2 or €140/m2. The same sources say that Inditex has continued to show interest in these plots adjacent to its large logistics centre to enable it to expand it, but it is possible that Inditex will not purchase the land itself, but rather allow a real estate developer that specialises in logistics to buy the land and then lease the facilities that its constructs.

The Corredor del Henares is still one of the most attractive areas in Madrid. Of the 45 operations closed in the logistics market in 2015 (data for 2016 has not been published yet), 26 were recorded along the A-2 axis, covering a surface area of 213,000 m2 and accounting for 56% of the total. The municipalities of Cabanillas del Campo, Alcalá and Azuqueca de Henares were in most demand, accounting for 40% of the total volume leased, according to a report from the consultancy firm CBRE. (…).

Original story: El Confidencial (by David Fernández)

Translation: Carmel Drake

Cifuentes Finalises Sale Of Land In Meco (Madrid) To Inditex

4 April 2016 – El Confidencial

Arpegio, the Community of Madrid’s public land management company, may receive a cash inflow this year if it manages to finalise the sale of a plot of land measuring 100,000 m2 that it owns in the town of Meco, just next to Inditex’s large logistics centre in the region. The land would be an ideal site for the Galician company to expand its facilities and Arpegio wants to generate profits from the plot, and whereby benefit from the investor boom surrounding such assets. Sources at the regional Government say that Inditex has expressed an interest in taking over the land, but Arpegio needs to resolve certain environmental problems that arose in this area precisely when Inditex first opened its centre there (in April 2007) and the R-2 highway was constructed, and a wetland area was created, which is now home to thousands of birds of 165 different species, many of which are protected.

Whilst the regional Government led by Cristina Cifuentes has been working to auction off this plot, the Town Hall of Meco is planning to amend the partial plan for the SUS-AE1 sector in May, required to protect the wetland and change the classification of this land, which is currently industrial. Inditex has declined to confirm or deny whether it is interested in the land, which according to market sources, could be sold for between €100 million and €120 million. Meanwhile, the fund Gazelly has already taken steps to try to buy another 300,000 m2 plot next to the land owned by Inditex, which also sits alongside the wetlands, although real estate sources say that this vehicle is acting on behalf of a third party. (…).

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake