Abrdn’s listed logistics fund buys a warehouse portfolio in Madrid for €227 million

Aberdeen Standard European Logistics Income PLC (ASLI) has announced the acquisition of a portfolio of newly constructed last-mile logistics warehouses with “excellent sustainability credentials”, located in the first ring of Madrid, in Getafe, for an acquisition price of  €227 million. 

The portfolio has a total GLA of 122,000 sq m and includes seven newly constructed logistics warehouses and one in-development with an accompanying multi-level delivery van parking station. All are located in one of the leading last-mile logistics hubs in Madrid and the wider Spanish market. Almost 6 million people are accessible within a 30-minute drive.

Amazon currently accounts for 43% of the portfolio’s rental income and other tenants include international food retailer Carrefour, UK electric-delivery-vehicle maker Arrival, and Spanish companies Talentum and MCR.

Garrigues, CBRE, KPMG and Linklaters advised previous owners Davidson Kempner and Palm Capital; while Savills Aguirre Newman, Pérez-Llorca and Deloitte advised Aberdeen.

Evert Castelein, Investment Manager of ASLI, commented: “This is an extremely rare opportunity to acquire a portfolio of truly last-mile warehouses, leased to investment grade counterparties, in one of Europe’s nascent but fastest growing e-commerce markets. Furthermore, the scale, specification and market leading environmental credentials increase its uniqueness as an investment proposition.”

“Despite recent growth, Continental Europe remains materially behind the UK in terms of e-commerce sales penetration, and we believe this provides a compelling backdrop for further strong performance. This acquisition has once again highlighted the importance of having local teams with strong relationships and a deep understanding of the key local market drivers.”

Patricia Valencia, Head of Asset Management and Transactions in Spain and Portugal of the fund, added: “We are very proud to have been able to close this emblematic operation that has generated so much interest in the Spanish market, both from national and international investors. We have further expanded our portfolio in the logistics sector in Spain, in a highly competitive environment. Logistics assets along with residential assets, are a strategic priority for Aberdeen today. In fact, we are closing the year with acquired properties in these two sectors for a value close to 370 million euros, which with our portfolio totals 875 million.”