Patrizia has been the latest institutional investor to buy into Spain’s logistics market as it continues to perform well fuelled by rental growth 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.
The German fund has agreed to pay €37.5M to buy a logistics center in Spain, on behalf of its pan-European fund for value-added assets, TEP VII. Located in the town of Ontígola, in the province of Toledo, the 66,424 m² property has been pre-let DHL and Logifashion, which plans to open during the first semester of 2019.
Patrizia currently manages four logistic properties, distributed in Madrid and Barcelona, totalling over 200,000 m². Globally, it already controls a portfolio of assets valued at €40 billion with a network of offices in 26 countries.
The vehicle has integrated Rockspring and Triuva, as well as Sparinvest Property Investors, which it acquired in 2017.