Merlin Enters the Top 10 Ranking of the Largest Logistics Owners in Europe

19 June 2019 – Cinco Días

Merlin Properties has been a major player in the European office and shopping centre markets for several years. But now, the Socimi led by Ismael Clemente has entered the Top 10 ranking of the largest logistics owners on the Continent, with its portfolio of 1.6 million m2 under management, according to a report about the logistics market compiled by Deloitte.

The Top 10 ranking is led by the listed US firm Prologis (17 million m2); Logicor, the firm controlled by China Investment Corporation and Blackstone, (13.5 million m2); and the fund manager CBRE GI (7.7 million m2). They are followed by the logistics specialists Segro, P3 Logistics Parks and Goodman.

Merlin owns 1.1 million m2 of logistics space outright and holds a 48% stake in a company that owns another 469,000 m2 of logistics space in the port of Barcelona. It also has 1.254 million m2 of surface area under development.

Investment in logistics assets is currently breaking records across Europe and in Spain, in particular, boosted by attractive returns and the boom in e-commerce. With the rising demand, the availability of high-quality warehouses is decreasing, hence the need to build more. According to Deloitte, investment in warehouse purchases amounted to €1.5 billion last year, the second best year ever after 2017, when the figure reached €1.6 billion.

Merlin is planning to invest €484 million in its Best II and Best III logistics funds between now and 2022. Most will be targeted in Madrid and its surrounding areas (Guadalajara and Toledo) and Cataluña, but investment will also be made in Lisbon, Zaragoza, Sevilla and Vitoria.

Original story: Cinco Días (by Alfonso Simón Ruiz)

Translation/Summary: Carmel Drake

Aena Launches the Largest Real Estate Plan in Spain

5 April 2019 – Expansión

Aena is planning to put up for tender between 160,000 m2 and 200,000 m2 of land at Barajas airport (Madrid) and another 300,000 m2 at El Prat (Barcelona).

The airport manager plans to invest €4.3 billion in the land adjacent to the Adolfo Suárez-Barajas (Madrid) and El Prat (Barcelona) airports and intends to put the first plots up for auction this year, most likely in December.

The firm led by Maurici Lucena has detected interest from funds and Socimis in its plots, which may be used for the development of logistics assets, as well as for hotel, office and commercial use. The plots are very attractive given their unique locations and connections and the three favourite investors at this stage are Blackstone, Segro and Merlin.

A priori, Aena’s idea is to create companies together with the investing partners who will finance the developments. Prices for the land at Barajas could range between €500/m2 and €750/m2 and for finished products could reach up to €1,800/m2.

In El Prat, the prices are expected to be higher given the space restrictions there, reaching around €2,000/m2 for finished products and between €750/m2 and €1,000/m2 for undeveloped plots of land.

Original story: Expansión (by Rebeca Arroyo)

Translation/Summary: Carmel Drake

Segro Buys a 28,500 m2 Warehouse in Granollers

29 January 2019 – Eje Prime

Segro is continuing to grow its logistics portfolio in the Spanish market. The British Socimi has acquired a distribution centre measuring 28,500 m2 in Granollers (Barcelona), leased to the logistics operator ID Logistics, with which Segro has a long-term agreement.

The asset was constructed in 2019 and is located thirty kilometres from Barcelona, with easy access to the A7 and C17 motorways. The group has highlighted “the location and access of the asset for distribution across the south of Europe”.

The company, founded in 1920, entered Spain in 2015 with the development of a logistics centre in Martorelles (Barcelona). Since then, Segro has purchased a 16,000 m2 logistics park in Coslada (Madrid), another 49,000 m2 site in Castellar del Vallès (Barcelona), a second plot in Martorelles, where it is constructing an asset spanning 20,000 m2, and a plot in San Fernando de Henares.

Segro has also added other plots in Getafe (Madrid), Sant Esteve Sesrovires (Barcelona), Mollet del Vallès (Barcelona) to its portfolio, as well as a second building in Coslada (Madrid), and Villaverde (Madrid). In total, the firm has a portfolio spanning 400,000 m2 of constructed space in Spain and another 70,000 m2 under construction.

Original story: Eje Prime 

Translation: Carmel Drake

Segro Purchases 44,500 m2 of Land for Industrial Development in Madrid

11 October 2018 – Eje Prime

Segro is increasing its commitment to the Spanish logistics sector. The British Socimi, which specialises in the industrial segment, has purchased 44,500 m2 of land on which it is going to build two urban distribution centres in Madrid.

The first logistics space is going to be located in the south of the Spanish capital. The centre, spanning a surface area of 33,500 m2, will be located in the district of Villaverde, an area that is home to multinationals such as Telefónica, Repsol and Air Liquide.

The Socimi is also planning to build a second warehouse measuring 11,000 m2 in the Madrilenian municipality of Coslada, where it already owns a business park. The company has chosen that location due to its proximity to Barajas airport, the centre of the Spanish capital and motorways such as the A-2 and the M-40.

This operation reinforces the good times that the logistics sector is enjoying in Spain, driven by the rise in e-commerce in the country. Not in vain, in 2017, the sector achieved an investment record, exceeding €1.5 billion.

With demand constantly growing, above all due to the arrival of international funds and investment firms that are keen to enter the logistics segment, encouraged by the high yields and stability, operators are also looking for land in the last mile space to respond to current demands. That means the development of sites on the outskirts of large cities, with assets that are no more than 50km away from the city centre.

Original story: Eje Prime

Translation: Carmel Drake

SEGRO to Build New 36,000 m2 Distribution Centre in Getafe (Madrid)

12 July 2018 – Press Release

SEGRO, the British investment fund specialising in the industrial and logistics real estate sector, is consolidating its position in Spain with the development of an additional constructed surface area of 36,000 m2 for distribution activities in Getafe, Madrid. Specifically, the 6-hectare plot is located in the “Puerta Mayor-Los Gavilanes” Business and Logistics Park, a strategic area where SEGRO already has another project under construction.

Through this operation, SEGRO is continuing to pursue its aim of becoming one of the main players in the logistics-real estate sector in Spain, where it has a total portfolio of 340,000 m2 comprising buildings and land for latest generation logistics and distribution activities. The firm is committed to high-quality facilities and locations.

SEGRO’s commitment to developing projects located in privileged areas is furthered with this new plot located just 14km to the south-east of Madrid, on the A-4 (Madrid-Andalucía) motorway and with direct access to the M-50. This enclave has a total surface area of 1,700,000 m2 and is one of the most modern external urbanisations around with 500,000 m2 of green space. It facilitates distribution in the capital, as well as to other parts of the country. Moreover, several multinational companies are located in the same area, including Amazon, Decathlon, CostCo and Coca Cola, reinforcing its position as a strategic enclave.

Flexibility is one of the defining characteristics of SEGRO, and for this reason, this new distribution centre may be adapted to the needs of its clients in order to ensure the fulfilment of their logistics needs. The project is going to be built in accordance with the latest environmental standards and with the aim of obtaining the BREEAM “Very Good” certificate, in line with SEGRO’s strategy to build modern, high-quality and flexible buildings.

Meanwhile, the firm’s first platform, measuring 47,000 m2, located in the same business park in Getafe, is in the final phase of construction and is expected to be completed by the end of 2018 (…).

SEGRO is now one of the largest logistics and distribution real estate firms in Spain and around Europe. It works on new build projects, as well as on the reconversion of existing industrial facilities.

Original story: Press Release

Translation: Carmel Drake

Segro Buys Factory in Mollet del Vallès to Convert into Logistics Hub

5 February 2018 – Press Release

Segro, the British investment fund specialising in the real estate-logistics sector, has acquired a 7-hectare plot in Mollet del Vallès (Barcelona). The site has a privileged location with immediate access to the A-7 (France-Madrid) and the C17, which leads directly to Barcelona, 21km away.

The property is going to be remodelled to provide space (40,000 m2) for urban storage and logistics, and is suitable for a single occupant but could be subdivided into units measuring 6,000 m2 – 7,000 m2. The construction work will begin during the course of 2019.

This acquisition comes soon after Segro’s recent acquisitions in Getafe (Madrid) and Sant Esteve Sesrovires (Barcelona) and further strengthens the firm’s growing presence in Spain, where it now owns nine assets in Madrid and Barcelona.

David Alcázar, Director of Segro Spain adds: “Our priority in Spain, like in other places, is to build modern, high-quality assets, not focusing exclusively on quantity. For that reason, we only choose strategic locations in the most dynamic regions of Spain. Our objective is to create and build innovative, high-quality warehouses for our clients, constructing environmentally responsible Class A buildings for urban distribution and logistics”.

Segro has also been holding conversations with the Town Hall of Mollet del Vallès and the municipal government has expressed its willingness to collaborate in new business ventures such as this one involving Segro, which as the mayor of Mollet, Josep Monràs, confirms “may generate work and offer opportunities to the citizens of Mollet del Vallès”.

Segro focuses on the investment and development of buildings with a long-term perspective, helping to attract business and activity in strategic areas, through its clients that are installed on its sites. It also specialises in the reconversion of industrial opportunities, thanks to its extensive experience in Europe.

About Segro

Segro is a listed British real estate investment company (Socimi) and a market leader in Europe in the management, promotion and construction of logistics and industrial assets. Segro owns and manages a portfolio of properties spanning 6.3 million m2, with a market value of GBP 8.0 billion, offering services to various clients in the logistics and industrial sector. Its parks are located in the main distribution and transport hubs of the countries in which it has a presence. It owns some of the leading logistics parks and transport centres in Europe (…).

Original story: Press Release

Translation: Carmel Drake

Segro Acquires 2 Logistics Plots in Madrid & Barcelona

16 January 2018 – Press release

Segro, the British investment fund specialising in the logistics sector, is increasing its presence in Spain with two new acquisitions in Getafe (Madrid) and Sant Esteve de Sesrovires (Barcelona). Both assets were acquired in December 2017.

On the one hand, Segro has announced the acquisition of a plot of land measuring 8 hectares in Getafe for the construction of a logistics warehouse measuring 46,000m2. That land is strategically located in the Puerta Mayor-Los Gavilanes Business and Logistics Park, a relatively new location 14km to the south of Madrid, alongside the A4 Madrid-Andalucía highway and with direct access to the M-50.

That logistically strategic area is home to several large multinational companies, such as Decathlon, CostCo and Amazon, but suffers from a relative shortage of buildings measuring more than 40,000 m2 in the market in Madrid, despite the high demand for large units this year. Work to build the logistics warehouse will begin during the first half of the year in response to this market need.

On the other hand, Segro has acquired a new asset in Sant Esteve Sesrovires. That plot comprises 8 hectares and is located 35km away from Barcelona’s city centre. Sant Esteve Sesrovires is located between the A2 and A7 highways, which run from Barcelona to Madrid and represents a strategic communication hub. Barcelona is an area with a shortage of modern, high-quality warehouses, and for this reason, Segro will proceed to construct a 51,000 m2 property (…).

Whilst the construction and financing of the project will be completed over 2 phases during 2018/2019, work on the first phase spanning 29,000 m2 will start at the beginning of Q1 2018. This project coincides with the construction of a 20,000 m2 warehouse that the firm is working on in Martorelles, which will be completed in the summer and available for rent thereafter (…).

With these two new acquisitions, Segro, in its commitment to expand its presence in Spain, is positioning itself as one of the important investors in the Spanish logistics market with a portfolio spanning 255,000 m2. Segro is continuing to focus on high-quality buildings and prioritise strategic locations to create a privileged portfolio of warehouses for distribution and urban logistics, creating high added-value spaces for large companies and SMEs alike.

About Segro

Segro is a British Listed Real Estate Investment Company (Socimi) and European market leader in the management, promotion and construction of logistics and industrial assets. Segro owns and manages a portfolio of properties spanning 6.3 million m2, with a market value of GBP 8 billion, providing services to various clients in the logistics and industrial sector. Its parks are located in the main distribution and transport hubs of the countries in which it has a presence. It owns some of the best logistics parks and transport centres in Europe.

Segro enjoyed a record year in 2016 and according to its provisional results for 2017, the company recorded a 3.9% increase in its net rental income. Moreover, it signed rental contracts worth GBP 27.5 million (around €30.8 million), up by 28% compared to the same period in 2016 (…).

Original story: Press release

Translation: Carmel Drake

Segro Acquires 5.3ha Plot In San Fernando De Henares

2 August 2017 – Press Release

Segro, the British investment fund that specialises in the logistics sector, has acquired a plot of land in San Fernando de Henares, Madrid. The plot has a surface area of 5.3 hectares and is located 17km away from Madrid, at the intersection of the A-2 and M-50 motorways, to the south east of Barajas airport.

The plot acquired by Segro is currently leased to a group that plans to operate the site as a logistics service centre for automobiles until 2022. This operation forms part of Segro’s strategy in Spain, which involves developing modern logistics facilities and urban buildings to support high-quality and sustainable distribution.

With this new acquisition, Segro is strengthening its presence in the Spanish market, where it is positioning itself as one of the major investors and developers in the logistics sector.

“San Fernando de Henares has become a key location, with several projects due to be launched over the short to medium term. This acquisition strengthens our position in Spain, in a strategic place that is just 17km from Madrid and it will allow us to build a logistics centre in a few years”, said David Alcázar, Director of Segro España (…).

Segro launched its activity in Spain in 2015 and since then has built up a portfolio containing five assets, covering a combined surface area of 120,000 m2 (constructed or under development) in strategic locations on the outskirts of Barcelona and Madrid.

Original story: Press Release

Translation: Carmel Drake

Segro Expands Its Logistics Park In Martorelles

27 April 2017 – Eje Prime

Segro is fuelling its business in Spain. The British investment fund, which specialises in the real estate-logistics sector, has expanded its logistics park in Martorelles, its first development in Spain, to 54,000 m2, according to a statement published by the company.

Segro’s tenant for the majority of the plant will be Amazon, which will occupy 34,000 m2, according to the group. Segro has announced the acquisition of a plot of three hectares, located in the same industrial area of Can Roca, in Martorelles. The company will allocate that land to the development of another 20,000 m2 for logistics warehouses.

The park is strategically located by the northern entrance to Barcelona, close to the A-7 motorway and just 15km away from the city centre. The project has been designed and constructed as a logistics facility, with loading capacity on both sides, and a high degree of flexibility in terms of its uses.

Since Segro began its activity in Spain in September 2015, it has acquired a logistics park measuring 16,000 m2 in Coslada (Madrid), in March 2016, another space spanning 50,000 m2 in Castellar del Vallès in September last year, and the new plot that it has recently acquired in Martorelles. In total, Segro’s portfolio contains 120,000 m2 of land (…) in Spain.

Original story: Eje Prime

Translation: Carmel Drake

Amazon To Open Logistics Centre In Martorelles

7 April 2017 – Press Release

Amazon’s commitment to Cataluña continues to grow. The e-commerce giant is going to open its new headquarters in Martorelles, specifically, in the Martorelles Logistic Park. Sources at the town hall assure that this new facility in Martorelles will result in the creation of 650 new jobs over the next three years. “Amazon plans to launch operations in the autumn with 200 people”, explained the mayor of Martorelles, Marc Candela.

Amazon will take over the four warehouses in the logistics park, which cover a surface area of 30,000 m2, equivalent to four football pitches. This is Amazon’s fourth investment in Cataluña after it confirmed the creation of a logistics macro-centre in El Prat in June; in September, it will inaugurate a warehouse in the centre of Barcelona from where it will ship products for delivery in less than one hour; and in October, it will build another logistics centre in Castellbisbal.

Warehouses A and B at the Martorelles Logistic Park, the logistics platform developed by the investor group Segro on the grounds of the former Domar-New Pol, on the Martorelles industrial estate, are about to begin operating. Currently, half of the facilities are ready and construction is beginning on the second phase of the logistics complex, warehouses C and D.

Original story: Press Release

Translation: Carmel Drake