Savills Aguirre Newman: Logistics Investment Fell by 17% in H1 2018 to €400M

31 July 2018 – Europa Press

The volume of investment in the Spanish logistics market amounted to €400 million during the first half of the year, down by 17% with respect to the same period in 2017, when the figure amounted to €490 million, according to figures compiled by Savills Aguirre Newman for its report entitled “The Logistics Market in Madrid and Barcelona, H1 2018”.

The entity explained that the decrease is due not to a reduction in investor appetite, but rather to a shortage of available supply in the main markets (Madrid and Barcelona), which is placing the focus of investors on secondary markets (Valencia, Zaragoza and Sevilla).

The initial yield for prime assets remains at around 6%, although for certain operations it has decreased to 5.5%.

In Madrid, according to the report, during the first half of the year, demand in terms of the leasing of logistics space was 17% higher than during the same period last year, with 451,000 m2 of space leased through 36 operations during H1 2018, compared with 387,000 m2 in the same period in 2017.

Four of the operations undertaken in Madrid, exceeding 20,000 m2 each, accounted for 48% of the total space leased. Activity in the Spanish capital was concentrated in Corredor de Henares, where 11 operations were closed, accounting for more than 118,000 m2 of the space leased (52% of the total).

In terms of the land market in Madrid, the report details that six operations were registered, accounting for a volume of more than 280,000 m2 altogether; one purchase stood out, in particular, spanning more than 95,000 m2, in Alcalá de Henares.

On the other hand, during the same period, 390,678 m2 of space was leased in the logistics market in Barcelona. Savills Aguirre Newman highlights the operation to lease a 48,000 m2 warehouse by Vente Privee.

During the first half of the year, 36 transactions were recorded in Barcelona in total, compared with 22 in 2017. One of the trends that has become clear is the projects being developed in the Logistics Activities Zone (ZAL), one of which involves a warehouse measuring 20,500 m2.

Moreover, a total of eight operations exceeding 20,000 m2 were closed, of which five were completed in the second quarter.

Original story: Europa Press

Translation: Carmel Drake

Barcelona’s Logistics Market Grows by 74% in H1, Boosted by e-Commerce

4 July 2018 – Eje Prime

E-commerce boosted the logistics market in Barcelona during the first half of the year. During the first six months of 2018, 390,678 m2 of logistics land was leased in the Catalan city and its surrounding area, representing an increase of 74.4% with respect to the same period last year.

According to data from Savills Aguirre Newman, e-commerce operators “are acting as the drivers of the market”. One example of this is the rental of a 48,000 m2 warehouse by the French operator Vente Privee (owner of the Spanish firm Privalia) in La Bisbal de Penedès.

During the first quarter of the year, 186,047 m2 of land was leased in the logistics market, whilst during the second quarter, that figure increased to 204,631 m2. In total, 36 transactions were closed during H1, compared with 22 during the same period in 2017.

“Another trend that has become apparent during the first six months of this year is that of turnkey projects, which have been undertaken in the Logistics Activities Zone (ZAL) as well as in the first industrial ring”, says Savills Aguirre Newman. These projects include the construction of a cross-docking warehouse for Cilsa and a warehouse for Saica in Sant Esteve Sesrovires.

In light of the increase in demand, the available stock in the areas closest to Barcelona is now less than 2.5%, according to the real estate firm, which is leading to the development of new projects.

“The lack of buildable land, as well as of constructed products, is leading new players, such as investment funds and property developers, to take positions in the logistics sector to incorporate new high-quality products”, adds Savills Aguirre Newman.

Another trend is the increase in the size of space leased per operation, with up to 8 transactions involving more than 20,000 m2 (compared with just two operations of those dimensions during the first half of 2017).

Original story: Eje Prime

Translation: Carmel Drake

Prologis Leases 48,400 m2 Warehouse in Tarragona to Vente Privee

24 May 2018 – Eje Prime

Vente Privee is strengthening its logistics structure in Spain. The French e-commerce titan, which also owns Privalia, has signed an agreement to lease a warehouse spanning 48,400 m2 in the Prologis Park Penedès complex in Tarragona.

The online retailer will whereby occupy the largest warehouse in the Prologis Park Penedès, which comprises three properties in total with a combined surface area of 128,000 m2. The complex, located between the Tarragonan towns of Santa Oliva and La Bisbal del Penedès, will allow it to handle the logistics requirements for the rest of the Iberian Peninsula and Southern Europe. The rental operation has been advised by the real estate consultancy JLL.

The reinforcement of Vente Privee’s logistics structure in the Spanish market comes a year after the group announced an €80 million investment to strengthen its R&D division. That project involves the launch of a start-up accelerator specialising in fashion, retail and technology on the campus of Paris-based Station F.

Original story: Eje Prime

Translation: Carmel Drake