Invesco Real Estate has paid €173 million for three newly-built logistics properties in Madrid and Barcelona.
Institutional investor interest in the Spanish logistics market continues to grow driven by growing rents and high returns. There was a significant shortage of logistic developments during the last decade, due to the Great Recession, and many of the existing current logistic parks in the country are of low quality or have been rendered obsolete thus limiting the alternatives available to institutional investors.
Spain’s e-commerce sector has also been growing rapidly in recent years generating greater demand for quality logistics parks. In fact, according to Guy-Young Lamé, director of European Research at Invesco, this rapid expansion is «due to its previous underdevelopment, which is why there is a growing demand for high quality logistics assets nowadays.»
The properties, which have a combined GLA of 189,000m² are located in Abrera, Barcelona and Madrid and include a forward-funding project in Southern Madrid which will be closed in the fourth quarter 2018. According to Fernando San Juan, Invesco’s Transactions Director in Spain, «the size, quality and location in premium logistics areas make the three properties truly unique and give us the opportunity to increase our presence in the segment called ‘last mile’, which is the last link in the chain for the distribution of goods in the cities.»
Invesco is an independent investment management with over $988 billion in assets under managament (as of August 31, 2018 ) and over 7,000 employees across the globe. The team in Spain is led by Alejandro Monge, the Head of Real Estate Acquisition and Director of Transactions who was previously the Head of Investments at Rodamco Espana.