Madrid-based private equity property manager Azora and PGIM Real Estate have launched a Spain-focused last-mile logistics joint venture, PGIM Real Estate Última Milla.
The JV is claimed to be the first pure-play investment vehicle focused on last-mile logistics assets in Spain.
Azora and PGIM Real Estate, working on behalf of its European value-add strategy, will jointly fund the JV. Azora will source assets and underwrite and manage the portfolio.
The JV will be funded with €75 million in initial equity commitments, providing a total investment capacity of over €150 million, for deployment over the next 2-3 years.
Targets assets are high quality last-mile logistics opportunities with strong sustainability credentials in the first-ring of Spain’s major cities, with a specific focus on Madrid, Barcelona and Valencia.
Pandemic boosts Spanish last-mile demand
The JV said in a statement that demand for high-quality last-mile logistics in the Spanish market has become even more apparent as Covid-19 accelerated already strong structural trends driving the sector.
“Spain’s historically low e-commerce penetration rate, which, even pre-COVID-19, was expected to grow by 11% per annum, combined with a wider focus on on-shoring and efficient supply chains as a result of the pandemic, is expected to drive increased demand for fit-for-purpose logistics space in the coming years,” the JV noted.
Azora’s head of strategy and business development Cristina Garcia-Peri added: “At a time when demand is increasing exponentially, with Spanish e-commerce penetration beginning to catch up with many other European countries, this venture will allow us to harness our expertise in the Spanish market to deliver double digit returns on behalf of our clients.”