SIRE buys €20 million Zaragoza logistics portfolio at 7% yield

Early in 2019, Arrow Capital Partners launched the Strategic Industrial Real Estate (SIRE) joint venture to purchase core-plus logistics assets with long-term leases. During the first half of 2019, the JV has invested €200 million across five European countries.

Arrow‘s latest acquisition in Spain is three-asset portfolio located in Zaragoza with a GLA of 38,536m² which has been purchased on a sale & leaseback basis. The investment volume exceeds €20 million according to Savills who has participated as an advisor in this acquisition along with law firm Latham & Watkins.

The buyers have indicated that the portfolio traded at a yield of 7% and is leased to Grupo Sese for a term of 10 years. Grupo Sese is one of the premier 3PL operators in Spain established in 1965 servicing e-commerce, distribution and supply chain solutions.

In Spain, Arrow Capital Partners has been appointed by Cerberus Capital Management to help manage a €750M Spanish light industrial and logistics portfolio. The portfolio is managed by Arrow Capital’s Spanish team which is led by Howard Barnes, formerly head of development at Talus Real Estate. The portfolio in Spain includes over 1,000 light industrial and logistics assets totaling around five million square meters.

SIRE has invested €100m into Spanish logistics market in H2 2019 and intends to accelerate this investment in 2020. Arrow Capital Partners manages in excess of €1.7bn of urban logistics, light industrial and land for development in Spain, and is in the process of packaging several portfolios for sale in 2020.

Arrow Capital has recently hired Savills to market a logistics platform in Sant Feliu de Buixalleu in the province of Gerona, in north-eastern Spain. This asset has a built surface area of 14.398m² on a 20.000m² fronting the C-35 main road.