Barings completes €42.8M off-market logistics sale & leaseback in Madrid

Barings has completed the off-market acquisition of a quality logistics asset totalling c48,000 sq m in Madrid, Spain, for EUR42.8 million on behalf of institutional investors. 

The tenant, one of the largest Iberian logistics group, which has occupied the asset for over 17 years, will enter into a new 20 year FRI lease. In addition, Barings has also acquired a plot of land adjacent to one of the existing units, which is already zoned for logistics and could accommodate up to c10,500 sq m of additional warehouse space to facilitate the tenant’s future growth.

Through this strategic partnership with Barings, the tenant will free up resources from its real estate division to invest in its fast-growing transport and logistic business that requires significant capex in order to maintain its competitive advantage in the market.

Situated 30 kilometers from the city centre, the portfolio, which also offers ca400 parking spaces, is strategically located within a very short distance of the M50 ring road and R2 toll highway. The asset is in a strong location for logistics not only due to its proximity to the most affluent areas of Madrid, but also for its easy connection to Madrid’s airport and the rest of Spain.

Adolfo Favieres, Managing Director, Real Estate Country Head Spain at Barings, says: “Favourable demographic drivers and rising e-commerce penetration continue to underpin the growth of the logistics market in Spain, a trend we expect to continue over the medium to long term. This portfolio is perfectly aligned to our core investment strategy, offering long and sustainable income from a good covenant, with a tenant that has heavily invested in these assets which are key to their operations in Spain.”

Gunther Deutsch, Managing Director, Head of Real Estate Transactions – Europe for Barings, adds: “After acquiring a speculative logistics development in Ontigola in 2019, this represents our fourth acquisition in Spanish logistics, of which three have been for our core strategy. We are very experienced in structuring sale and lease back transactions with owner occupiers which we have demonstrated already in Germany, Italy and now Spain. We continue to have a lot of appetite for single logistics asset transactions, as well as pan-European portfolios, in our focused markets of Finland, Sweden, Netherlands, UK, Germany, Italy, France and Spain across the risk spectrum from core to opportunistic.”

Barings was advised by Arcadis, Dentons and Deloitte.