M&G grows Iberian portfolio with logistics acquisition from Invesco

Invesco has sold a logistic warehouse in the city of Getafe to M&G’s European Property Fund for €32M which it will add to its existing logistic portfolio that includes Teka’s Logistics Platform and a further asset in the Getafe logistics corridor.

The 29,536m² warehouse was built in 2018 and is located in the Los Gavilanes industrial estate, in the town of Getafe, (Madrid province) at the intersection of the A4 with the M50.

The logistics asset, which has 36 docks, is 85% let to Mercadona, transport company Acer and Atdl amongst others and has a LEED Silver certification.

For Invesco, the sale fits in with the asset rotation strategy of their value-added funds. According to Alejandro Monge, Country Manager of Invesco, «the profitability of this investment has been higher than the estimates».

Commenting as advisor to the deal, national director of Industrial & Logistics of CBRE Spain, Alberto Larrazabal stated that «with the rise of e-commerce, these warehouses located near cities like Madrid, in this case, are generating a lot of interest among investors».

M&G European Property Fund has been growing its portfolio in Spain with the acquisition of industrial and retail assets and, more recently, the fund has announced the acquisition of various residential plots in Madrid to be developed along with Stoneweg. The JV vehicle plans to develop two 25-storey sky scrapers with over 600 flats.

Last May, the €3 billion core European property fund, managed by M&G Investments’ real estate arm, announced the purchase of two industrial and two retail assets for €80M. These were the H&M store in Granada’s Reyes Catolicos street and the retail unit on nº68 Gran Via with a combined GLA of 3,668m². The logistic assets, on the other hand, had a combined GLA of 55,092m².