Inv’t In Industrial & Logistics Land In Valencia Already Exceeds 2016 Total

30 October 2017 – El Economista

Demand for industrial and logistics land is growing fast in the province of Valencia. Sale and purchase operations involving this type of land have already exceeded the total volume of space (in square metres) sold during 2016 as a whole, by 30% at least, when operations spanning 585,000 m2 of space were signed – 130% more than during the previous year.

Information from specialist consultants and other data provided by public managers indicates that more than 750,000 m2 of land has been acquired, with a significant percentage of the operations being closed in Ribaroja, Cheste and Sagunto –almost half of the square metres purchased are located in Parc Sagunt, which has experienced a boom since the arrival, in December, of Mercadona, which plans to construct its largest logistics platform there (…).

This increase in demand comes in response to a combination of factors, including: the consolidation of the economic recovery, supported both by internal demand and the export of products and services, which has boosted projects to expand production capacity and storage by industrial groups; the positive outlook for the next few years; improvements in terms of the access to and conditions of financing; projects to improve the communications network – above all, the railways; the growing interest from investors – corporate and institutional, in particular – looking for options to generate higher returns than those found in the financial and securities markets; and the growing demand for modern, high-quality, large assets, in good locations, which have been underserved in recent years due to the total stoppage of new development projects in this field, as a result of the economic crisis (…).

Aguirre Newman adds another element that has benefitted the Valencian market: “The shortage of supply in the main markets in Spain – Madrid and Barcelona – has boosted interest in secondary markets, in particular, in Zaragoza, Valencia and Sevilla”. And this trend could be reinforced in the coming months due to the instability in Cataluña, which is leading to the departure of companies and the suspension of investments.

This confluence of factors has contributed to an increase in the presence of investment funds, Socimis and specialist property developers as the main players participating in sale and purchase operations, above all in the last year and a half (…).

In terms of rental prices, in the prime areas of Valencia, maximums amount to €4.25/m2/month in the Centre Axis of Ribaroja, whilst in the Southern Axis (…), rents have stabilised at €4/m2/month.

In terms of the profitability of logistics rental spaces, whilst in Madrid and Barcelona, yields amount to between 5% and 6%, in the areas with the highest demand in the Community of Madrid, they range between 7% and 9%, according to the consultants (…).

Meanwhile, the Port Authority of Valencia (APV) expects that the Logistics Activity Area (ZAL) will become operational during the first half of 2018, after two decades of delays (…).

Original story: El Economista (by Olivia Fontanillo)

Translation: Carmel Drake

Mercadona Signs Purchase Of Giant Plot In Parc Sagunt, Valencia

9 October 2017 – Eje Prime

Mercadona has finally got a foothold in Sagunto. The food distribution chain is continuing to shake up the logistics business in the country with the purchase of a plot of land measuring 358,270 m2 in the Sagunto Business Park (Valencia).

Although the agreement was announced almost a year ago, it was not until last week that the deal was actually signed. Now, Mercadona will have to wait another nine months before work starts on the construction of the logistics centre that it plans to build on the site, according to Expansión.

This is the first of three plots that the firm has acquired on the industrial estate: 600,000 m2 of land in total for €41.31 million. This means that one third of the Parc Sagunt industrial area is now owned by the group led by Juan Roig.

The positioning of Mercadona in Sagunto has attracted other companies to the sector, as evidenced by the purchase of two other plots on the industrial estate by Vostok and Inlet Seafish, which spent €1.43 million and €620,000 on their sites, respectively.

Original story: Eje Prime

Translation: Carmel Drake

Crown Holdings Will Invest €66M In Canning Plant In Parc Sagunt

10 July 2017 – Levante-EMV

The US multinational Crown Holdings will invest €66 million in the construction of its aluminium can manufacturing plant in Parc Sagunt. The arrival of this company, which has strong roots in Spain, but which had never set up shop in the Communidad Valenciana before, means that there is barely any available land left at the capital’s mega industrial estate in Campo de Morvedre. The firm will occupy 60,000 m2 (15%), which in addition to the 70% of land acquired by Mercadona and the plot to be taken over by Puerto de Valencia, means that the Generalitat is now under pressure to commence development of the second phase of the logistics hub.

The President of the Generalitat, Ximo Puig, announced on Thursday that the Board of Directors of Parc Sagunt, would approve a new investment from a multinational on Friday. This company, according to sources close to the operation, is the US firm Crown Holdings, one of the largest manufacturers of metal containers for food in the world. The firm’s new facilities will result in the creation of more than one hundred direct jobs and around twenty indirect roles.

Crown Holdings has a presence in Spain (Crown Bevcan España and Crown Embalajes España) as well as in another 40 countries and records net sales amounting to more than $6.2 billion. In 2014, it purchased the Spanish group Mivisa, which is headquartered in Murcia and which was one of its main competitors in the country, for €1,200 million.

The US firm is a supplier of Jealsa, in turn, which produces canned fish for Mercadona. Although in the case of the plant in Sagunt, the company plans to enable an aluminium can production line for drinks. Its clients include Nestle, amongst others (…).

Original story: Levante-EMV (by Sergi Pitarch)

Translation: Carmel Drake

Mercadona Acquires Logistics Plot In Valencia For €24M

9 December 2016 – Expansión

The supermarket chain Mercadona is preparing to build a new logistics centre in Parc Sagunt, the largest industrial estate in the Community of Valencia, which is almost empty at the moment.

The firm has acquired a plot measuring 358,270 m2 for €24 million, on which it will construct a logistics block. The centre will not be used to supply the chain’s stores directly, like its existing centres, but will instead centralise the storage and distribution of products to the other logistics centres. It will be the first point of receipt for products that due to their nature require this kind of logistic management, for example, perishable goods, goods from the same supplier and goods imported through ports.

Sources at Mercadona explain that, for the time being, the definitive design for the centre and the total investment have not been defined.

The chain currently operates thirteen logistics centres and three satellite warehouses. In total, it has a surface area of 854,000 m2. In 2007, the company launched a strategy involving intelligent logistics centres, which kicked off with the construction of a centre in Ciempozuelos (Madrid) and was subsequently extended to include centres in Ribarroja (Valencia), Villadangos (León), Guadix (Granada) and Abrera (Barcelona). The final phases still need to be incorporated into this last block. Around €300 million has been invested to date.

In recent years, Mercadona has invested €700 million in its logistics platforms. It will open its next centre in Vitoria, whose first phase will be operational next year, following a €50 million investment.

Relief for Parc Sagunt

This operation was approved on Wednesday by the Board of Directors of Parc Sagunt, the property developer of the land that is jointly owned by the Generalitat Valenciana and the state owned company Sepi (50% each), which have invested €132 million. Mercadona’s arrival at the industrial estate represents a breath of fresh air for the space that had become something of a problem for the Administration. Even though the majority of the site has been completed since 2008, only three companies currently operate there and most of the land is still up for sale.

The plot that Mercadona has acquired is well known, given that in 2007, it was awarded to the Ros Casares group to open its major steel works Brava Steel, but that was never built. Now it has been sold for 41% less.

There are currently 26 other plots of land for sale and experts expect that, thanks to the arrival of Mercadona, demand for those plots will now increase, after years of paralysis.

Original story: Expansión (by J.B. and A.C.A)

Translation: Carmel Drake