Mercadona Invests €80M in its Corporate HQ

26 January 2018 – Expansión

The largest supermarket chain in Spain, Mercadona, is looking forward to having new headquarters by 2021. The company chaired by Juan Roig has started work on the construction of an office complex that will house its central headquarters in Albalat dels Sorells, just over 10 km from the centre of Valencia.

The construction work of this authentic corporate city will involve an investment of €80 million to build three new properties with a surface area of 25,000 m2, as well as a large underground parking lot.

That amount does not include the price of the land, given that the plots in question have belonged to Mercadona for more than a decade when it first planned the development of this area for its future needs. In fact, the new offices will be located next to its data processing centre and a training and services centre that the company inaugurated in 2014 as a first phase, with an investment of €45 million.

The future corporate city will concentrate the activity and services that the Valencian company currently houses in its historic headquarters, an ancient building next to one of its supermarkets in the heart of the town of Tabernes Blanques and on the Fuente del Jarro de Paterna industrial estate. At the new site, the company will have the capacity to house around 1,000 workers; the construction work is scheduled to finish in 2021.

According to Mercadona, the new intelligent buildings have been designed in line with environmental criteria relating to energy efficiency, sustainability and responsible use of water. The supermarket chain expects around 150 suppliers to participate in the construction work and that around 600 people will work on the development over the next few years.

Original story: Expansión (by A.C.A)

Translation: Carmel Drake

Mercadona Buys 3 More Logistics Plots In Sagunto

12 June 2017 – Expansión

The Parc Sagunt industrial estate, which has been dormant for years and which has been promoted by the Sepi and the Generalitat Valenciana, is set to become one of the main logistics centres of the supermarket chain Mercadona.

In December, the group announced the purchase of the largest plot on the estate, measuring 358,000 m2 in total, for the construction of a buffer warehouse. On Friday, the Board of Directors of Parc Sagunt – in the Valencian town of Sagunto – announced the sale of another three, smaller, plots to Mercadona. Together, these latest plots cover a surface area of 211,000 m2.

The operation in December saw Mercadona pay €24 million, whilst the acquisitions announced on Friday amounted to €17 million. As such, to date, the chain has spent €41 million buying plots of land in Parc Sagunt. Oriol Montanyà, Logistics Director at Mercadona, said that these plots “will serve to complement the future requirements that may arise at the main warehouse that the company plans to build with service, grouping and packaging warehouses”.

Cluster of suppliers

The idea that Parc Sagunt could end up being a logistics cluster for Mercadona’s suppliers is gaining momentum, given that, on Friday, the industrial estate also approved the sale of another plot of land, measuring 16,000 m2, to the company Vostok, which is going to pay €1.4 million. That company has very close links with Mercadona, given that it collaborates with (…) its integrated supplier Patatas Lázaro, which works almost exclusively for the supermarket chain.

Original story: Expansión

Translation: Carmel Drake

Mercadona Leases New 23,000 m2 Logistics Centre From Prologis

7 June 2017 – Expansión

The supermarket chain Mercadona has just strengthened its logistics network by leasing a new warehouse from Prologis. The warehouse, measuring 23,000 m2, is located in Ribaroja de Túria (Valencia), the town where the supermarket chain already has one of its major logistics centres. The distribution group has occupied the site since the middle of May. Sources at the chain explain that this warehouse will serve to support the major block that it already has in Ribaroja, which has seen its needs increase.

The warehouse is located on one of the two plots of land that Prologis acquired a year ago from the Generalitat Valenciana in the Valencia Logistics Park.

The rental price is estimated to range between €4/m2 and €5/m2. After finalising construction work in April, the logistics group reported that it was going to be the first building that it has inaugurated in Spain since 2009 and that it represented a symbol of the reactivation of its property development activity. Prologis’ plans include beginning construction on a second twin centre on the adjoining plot. The logistics company has invested €13 million in these facilities.

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

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

Lidl Opens Its Largest European Logistics Centre In Madrid

26 September 2016 – Expansión

In Alcalá de Henares (Madrid) on Thursday, the German supermarket chain Lidl opened the first phase of what will be the group’s largest and most technologically advanced logistics platform in Europe. The project will be completed in 2018, when the centre will become fully operational.

With this infrastructure, the company is making a strong commitment to the Spanish market, where it has been operating since 1994. The firm’s total investment will exceed €70 million. Thus, the result will be a site with 61,000 sqm of storage space (45,000 sqm being opened now, plus 16,000 sqm to be added in the second phase), with an automated silo measuring more than 40m tall. This centre will be able to store 71,000 pallets. (…).

With the launch of this first phase of the logistics centre, Lidl has created 100 new jobs. That figure will increase to 275 by the time the platform becomes fully operational in 2018.

Fourth generation

Lidl also unveiled its new eco-sustainable store model in Coslada (Madrid) yesterday. It is the most sustainable supermarket in Spain. (…)

Original story: Expansión (by María Sánchez)

Translation: Carmel Drake

DIA & Blackstone Close Largest Industrial RE Transaction Since 2013

11 March 2015 – ABC

The two companies have signed a contract for the rental of logistics buildings covering 30,000 square metres.

Logicor, the logistics platform owned by Blackstone, has signed a long-term rental agreement with the supermarket chain DIA for 30,000 square metres of space, which makes it the largest lease transaction in the industrial sector since 2013.

The rental contract covers a substantial part of a 37,000 m2 warehouse in the Miralcampo Logistics Park (in Corredor de Henares), a building that was acquired by Logicor at the beginning of 2014, according to JLL, the real estate consultant that has advised this transaction.

Logicor is the largest owner of logistics warehouses in the Iberian Peninsula, with a portfolio of 960,077m2. According to Logicor’s director general for Southern Europe, the positive changes in the real estate investment market in Spain are starting to be reflected in occupancy rates in the logistics sector.

That, combined with the limited availability of large, modern logistics warehouses in Madrid, has meant that tenants are under more pressure to hire the highest quality products, he added.

The CEO and Chairman of Logical, Mo Barzegar, highlighted that this transaction reflects the company’s investment strategy to purchase functional warehouses, close to urban areas, that are attractive to clients. JLL España advised Logicor in this transaction.

Original story: ABC

Translation: Carmel Drake