Plan Nazaret Recovers 230,000 m2 of the Port of Valencia for the City

11 January 2019 – Inmodiario

The Board of Directors of the Port Authority has approved the Nazaret Este Plan, which represents the first step in the development of a new area in the Nazaret neighbourhood of Valencia.

The mayor of the city, Joan Ribó, has highlighted the importance of the approval of this plan, which will involve the recovery of 230,000 m2 of land in the Port for citizens, of which more than 86,000 m2 will be configured into a large green space: the future “Rivermouth Park”, which will connect with the end of the Turia Channel.

According to the mayor, “it will be one of the largest parks in Valencia. It will be connected to the river and will have green corridors that will link up with the L’Albufera National Park (…)”.

Original story: Inmodiario

Translation: Carmel Drake

Blackstone, Lar, Crown…the Appeal of the Port Feeds Valencia’s Logistics Boom

18 November 2018 – El Confidencial

The growth of cargo traffic at the Port of Valencia and its role as a maritime port of entry for the ‘hinterland’ that runs from the central area of the Mediterranean to Madrid and its metropolitan area, are feeding a boom in logistics operations in the area around the capital of the Community of Valencia. Large funds and multinationals such as Blackstone and the US manufacturer of metal containers for the agro-food sector, Crown Holdings, have pounced on the chance to occupy spaces in well-communicated areas, either to develop projects for third parties or to set up shop themselves ahead of forecast growth in operations towards clients located in the area.

The latest operation has been finalised very recently with the acquisition by Grupo Lar of a plot measuring 40,000 m2 for the construction of a warehouse measuring 25,000 m2 in Quart de Poblet, next to the access point to Valencia along the A-3 motorway, which connects the city with Madrid.

That ring road and the industrial estates located either side have been experiencing important movements for several quarters. Business sites such as those in Loriguilla and Riba-Roja are on the verge of saturation and are still welcoming new projects, such as the logistics platform that MRW inaugurated in July on the El Oliveral site. That same month, Blackstone acquired Lar España’s logistics portfolio for €120 million, which included land for development in Cheste (also on the A-3 axis) and a warehouse in the Juan Carlos I Park in Almussafes, where the Ford factory and an important proportion of its auxiliary industries are located. The speculative bet of the US investment bank is seeking to take advantage of the shortage of land dedicated to storage and transport management operations that is starting to be seen in Valencia.

Last year saw record leasing figures, with more than 220,000 m2 of space leased, up by 69% with respect to the previous year, according to a report compiled about the logistics market in the city by CBRE, one of the most active consultancy firms in this real estate segment in Valencia and its metropolitan area. The increase in leasing in Valencia is running in parallel to the market in Madrid, which rose by 100%, and despite a notable decrease in Barcelona, which saw a sharp drop in the volume of surface area leased (…).

CBRE has identified three major areas for logistics operations. The first is the town centre and the first storage arc focused on serving the city and its surroundings. The second arc is very closely related with companies linked to the port activity. That is where the Riba-roja, Loriguilla and Cheste industrial estates are located, on the motorway that connects Valencia with Madrid. Then, there are the new logistics developments that are being built in the north in Parc Sagunt (…).

The potential demand is high, estimated at 1.7 million m2 across the three rings, according to estimates from CBRE. But the lack of available plots in prime areas is endangering the “major opportunities in the business”. The returns on those well-located plots are the highest (6.75%) of any of the main European centres, above those in Madrid and Barcelona (5.85%). “There is a general need for new at risk developments”, said the consultancy firm rather than for “turnkey” projects, which the local property developers have been focusing on until now.

Original story: El Confidencial (by Víctor Romero)

Translation: Carmel Drake

Valencia is Awarded 200,000 m2 of Land by the Port for Conversion into Green Space

26 February 2018 – Inmodiario

The mayor of Valencia, Joan Ribó, and the President of the Port Authority, Aurelio Martínez, have jointly presented an agreement for the use by citizens of 195,000 m2 of Port Authority land in the neighbourhood of Natzaret. The site will contain a park (el Parque de Desembocadura) measuring 63,800 m2, a large sports area spanning 88,000 m2, a tertiary use area and the concession of land to allow the Jardín de Túria to be extended to reach the sea.

“Construction work on the future ‘Parque de Desembocadura’ will start soon. Until now, it has been all about the paperwork and negotiations, but people are going to be able to start strolling through here very soon. It is a very important step for the neighbourhood of Natzaret and for the city as a whole, and very important for the redirection of the seafront, which is the main large project that remains outstanding in terms of town planning in Valencia (…)”, said Joan Ribó, after the approval of the agreement by the Board of the Port Authority (…).

The immediate work that the mayor refers to will begin on a plot measuring 22,000 m2, which citizens will be able to enjoy as soon as possible. The granting of the total space spanning 195,000 m2 in the Natzaret area is going to be the city’s third green space, of which the Parque de Desembocadura will occupy 63,802 m2.

At the same time, the plan is to create a sports area, spanning 88,000 m2. “It is going to be an area between the Natzaret and Puerto neighbourhoods, which I think is really important; it is going to have a lot of positive consequences for boosting the neighbourhood and also for mobility and connections between the neighbourhoods and the city (…)”, said Ribó (…).

The agreement also provides for the creation of a tertiary area (located on part of the site of the former Moyresa factory) which will have a surface area of 19,500 m2 and a buildable surface area of 25,000 m2 (…).

Meanwhile, Aurelio Martínz, President of the Port Authority, expressed his satisfaction “about this agreement, which has required lots of months of work and effort to achieve and to which the mutual understanding that exists with the mayor of Valencia has contributed” (…).

He added that it is a former port space, “which is being made available to the Town Hall and to its citizens” and also that “the fence is going to be maintained for reasons of security just like in other parks that are open for use by citizens during the day”.

Original story: Inmodiario

Translation: Carmel Drake

Prologis To Invest €30M In New Logistics Centre In La Ribera

25 April 2017 – El Mundo

The period of lethargy in the logistics sector has come to an end. With a growing demand that far exceeds supply, the US-based multinational Prologis is planning new projects in the Community of Valencia. The company, which is headquartered in San Francisco, inaugurated the first phase of a centre on the Valencia Logistics Park (Parque Logístico de Valencia or PLV) last week and is now finalising the construction of another large project in Massalavés, in the Ribera Alta region. This warehouse will have a constructed surface area of 60,000 m2 on a plot measuring 90,000 m2, according to the Director General for Prologis Iberia, Gustavo Cardozo.

Unlike the property inaugurated in Riba-roja, which the logistics multinational has constructed at its own risk to offer it under lease, the park in Massalavés will be constructed jointly with an operator to whom the new venue will be delivered turnkey. Negotiations with the interested company are very advanced, although Cardozo managed to avoid revealing the identity of the company in question. The project will be carried out on a plot of land that Prologis acquired in 2005, but which has been undeveloped since the outbreak of the crisis.

The Director General of the company in Spain estimates that the investment relating to this project will amount to €30 million, although the impact of Prologis in the region will be higher. In addition to that figure, there is the amount that has been allocated to the construction of the two modular warehouses in Riba-roja (€20 million). This centre, whose first phase is already operational, will generate 170 direct jobs, according to the Councillor for Homes and Public Works, María José Salvador, who cut the ribbon at the inauguration ceremony. Also in attendance at the inauguration were the Director General of Prologis for the South of Europe, François Rispe, as well as the mayor of the town, Robert Raga. (…). According to Raga, the new tenants will move into a plot of land measuring 27,000 m2, which until now had been owned by the Town Hall.

Over the last two years, commercial operations have resumed with a bang on this logistics industrial estate, which the Generalitat developed back in the day. Under this legislature, around 130,000 m2 have been sold, compared with just 10,000 m2 during the previous one. These facilities, located next to the bypass, less than 25 km from the Port of Valencia and 10 km from the airport, are receiving interest from investors, according to the Director General of Prologis, who also thanked the Valencian Government for the powers it has granted to enable this first phase to be executed in just over a year from the date the plots were acquired. (…).

The Riba-roja operation is the first that the US company has undertaken at its own risk in Spain since 2009. Prologis purchased 70,000 m2 of land in July 2016 and by November, had begun construction of the first warehouse, which is divided into four 6,000 m2 modules so that it can be rented out to a single operator or to various. According to Cardozo, it does not look like marketing this space is going to be a problem, given the high level of demand for logistics facilities in this area.

Such is the case that construction is expected to start on the second phase within the next few months. The twin warehouse will also have a surface area of almost 24,000 m2.

Original story: El Mundo (by Francisco Álvarez)

Translation: Carmel Drake