Socimi P3 Spain Logistics Parks Will Invest €200M in 2018

12 January 2018 – Expansión

The Socimi P3 Spain Logistics Parks, which specialises in the logistics sector and which is controlled by GIC, the Singapore sovereign fund, is planning to invest around €200 million in Spain in 2018 on the purchase of assets and land, as well as on property development.

Of the total amount, €60 million will be spent on the acquisition of land, explained the Director General of the Socimi, David Marquina, yesterday. In addition to strengthening its presence along the Madrid-Zaragoza-Barcelona corridor, the objective of the firm is to grow along the Mediterranean Corridor, where it aims to reach as far as Málaga and Sevilla.

As part of its strategy, in December, P3 Spain Logistics Parks purchased a warehouse measuring 6,000 m2 in Valencia, which it will extend by another 6,000 m2, so that the frozen food logistics company Montfrisa can establish a hub there.

During the same month, it completed the 3,684 m2 extension of the logistics supply centre that the company owns in Getafe (Madrid), which now spans almost 20,000 m2.

Marquina considers that in 2018 investment will grow by more in Madrid than in Barcelona, due to the political uncertainty (in Cataluña) and the lack of available land in that area. Other cities, such as Valencia, will also benefit from this displacement in investor interest.

Original story: Expansión

Translation: Carmel Drake

Land Use In Espai Vila-Real May Be Modified

20 October 2017 – El Periódico Mediterráneo

“Clearly, times have changed”. With that phrase, José Benlloch, the mayor of Vila-real, acknowledged that the plots of land in Espai Vila-real may be reclassified (in terms of their use), now that the Government has decided that the intermodal station will not be constructed in Castellón.

One door closes, but others open, and the Town Hall wants to be prepared not to waste its opportunities. It is for that reason that Benlloch is planning to meet the owners of the land, spanning 1 million m2, which comprises this Comprehensive Action Plan (PAI), to find out “what options are being considered in terms of its ownership and to inform them about the current possibilities”.

The mayor seems willing to modify the uses of the land if necessary and to “change the terms of the program, provided there are expectations on the part of the owners”. The one option the municipal corporation has ruled out is the large shopping centre that the Popular Government’s team, led by Juan José Rubert, planned in 2007. That plan included, amongst other matters, the arrival of the Swedish multinational Ikea in the town.

Mediterranean Corridor

One of the options that is gaining strength at the moment is the conversion of these plots, located opposite Porcelanosa, into a logistics hub, linked to the construction of the third strand of the Mediterranean Corridor. Such infrastructure is being demanded not only by the Regional Government but also by most of Valencia’s businesses. “We are aware that if this goes ahead, users will need places for storing goods temporarily, and we think that these plots are perfect for that, given that they are located in the heart of a very industrial district, La Plana Baixa”, explained the mayor.

Even though this idea will be on the table at the meeting between the Town Hall and the landowners, Benlloch is convinced that this question may be “compatible” with other proposals linked to the installation of new industries and projects relating to services, as well as the business that may be negotiated over the next few months. That said, the mayor wants to begin the new phase that is been opened by drawing “a roadmap that is shared” with the owners.

Original story: El Periódico Mediterráneo (by Xavi Prera)

Translation: Carmel Drake

Singapore GIC To Expand Its Logistics Portfolio In Spain & Portugal

19 May 2017 – Expansion

P3, the company specialising in the ownership, development and management of logistics assets, wants to take advantage of the support being offered by its new owner, the sovereign fund Singapore GIC, to lead the logistics market in Spain and establish itself as one of the country’s leading developers and investors in this segment.

The company, which operates under the commercial name P3 Logistics Parks, currently owns a portfolio of assets covering 400,000 m2 in Spain, after it purchased eleven logistics warehouses in April. P3 is planning to finish the year with 500,000 m2 under management, according to the CEO of the company in Spain, David Marquina.

“We want to become one of the main suppliers of logistics space over the next three years. Specialisation and a long-term outlook are our mantras”, he said.

To this end, P3 has just opened an office in Madrid and has a team there analysing opportunities. The group specialises in closing off-market operations.

The firm wants to strengthen its two business lines in the country: investment in rental assets and the construction of turnkey projects for clients. “We are analysing both the purchase of companies that own logistics assets, as well as the acquisition of portfolios and individual properties to grow in size”.

Similarly, as part of its expansion plan, P3 is considering expanding its operations into Portugal. The company, which was created in 2002 in Prague and which quickly began its expansion into central and Western Europe, owns a portfolio containing 170 logistics warehouses and parks in 11 countries across Europe, spanning a total surface area of 3.5 million m2 and with a land bank covering more than 1.8 million m2 for development.

“Germany, France and other countries where we have had a more limited exposure until now, such as Italy and Spain, are strategic markets for the group”.

In Spain, P3 has a presence in the central logistics corridor, which connects Madrid, Zaragoza and Barcelona, and it wants to strengthen its presence in the Mediterranean corridor.

The director highlights that 98% of its assets are leased through rental contracts that have an average term of 6.2 years.

For Marquina, the economic recovery and political stability have allowed investors to be interested in Spain, which is firmly back on the investment map. “After the crisis, real estate and logistics development was left paralysed. The stock became obsolete and out-dated. Over the last four years, liquidity has increased in the market and there has been a compression in yields, but there is still a long way to go”, he said.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

P3 Acquires 11 Logistics Assets From Gore Spain For €243M

10 April 2017 – P3 Press Release

Pan-European logistics property investor-developer P3 has started its latest phase of expansion with the acquisition of a 322,500 mportfolio of 11 logistics and distribution warehouses in Spain from Gore Spain Holdings SOCIMI I, S.A.U. The purchase price was agreed at €243.35 million.

The portfolio includes assets in key strategic logistics locations around Madrid, Zaragoza, Toledo and Guadalajara as well as the coastal cities of Valencia in the east and Biscay (near Bilbao) in the north.

The purchase, which comes shortly after P3 announced a record performance across Europe in 2016, takes P3’s asset base in Spain from just over 70,000 m2 to nearly 400,000 m2 and is one of the largest portfolio transactions in Spain in recent years.

David Marquina, P3’s Managing Director in Spain, said: “This is a good opportunity to reinforce our footprint in Spain’s central logistics corridor, which connects Madrid, Zaragoza and Barcelona. Our next target is to increase our presence in the Mediterranean corridor, around Barcelona & Valencia and expand to Málaga. We will be focusing on acquiring institutional-quality logistics assets and off-market deals, where P3’s long-term investor-developer approach can make a real difference.

“There are several Build-to-Suit projects and single asset acquisitions in the pipeline, which will allow us to grow to 500,000 m2 of high quality, well-located logistics space under management in Spain before year end.”

The properties range in size from just over 7,500 m² in the Getafe area of Madrid to over 80,000 m² in Zaragoza. They are all fully let to blue chip domestic and international companies including DHL, which is also a P3 customer on seven other parks in four countries, Orangina Schweppes Espana and the office products retailer Staples.

In addition to the built assets, two of the warehouses have adjacent land totalling over 26,000 m², with potential for P3 to develop.

Commenting on the purchase, P3 CEO Ian Worboys said: “The Spanish economy is expanding and we identified the country as a key target for P3 in 2017. We’re delighted to have been able to acquire this portfolio which makes us one of the leading players in Spain and is in line with our growth strategy across Europe as a leading property investor-developer.”

P3 was advised on the purchase by CBRE, legal consulting was provided by Herbert Smith Freehills (HSF).

Original story: P3 Press Release

Edited by: Carmel Drake