Patrizia is betting on the logistics sector in Spain with a new acquisition to expand its footprint in the country, bringing its total AUM in logistics to over €5.8 billion.
The group has forward purchased a logistics warehouse development in Illescas for around €56 million on behalf of institutional clients. The asset will have a combined surface of 92,000 sq m and is scheduled to be completed by Q1 2023.
“The logistics sector has proven to be a safe haven during the Covid-19 pandemic,” said Martin Trodden, fund management, Patrizia. “As the economic recovery takes hold, we are seeing continued growth in e-commerce and increasing demand from logistics occupiers. Despite many new entrants to this investment sector, our specialist logistics funds benefit from a long track record and unique market insight that allow us to find value in this asset class.”
The investment was made on behalf of a Patrizia logistics flagship fund for its institutional clients and further strengthens the already significant logistics portfolio of the firm.
“This acquisition will add another modern, flexible and competitive asset in the second logistic ring of Madrid to our growing logistics portfolio in Iberia,” said Eduardo de Roda, Country Manager, Patrizia Iberia. “We are particularly pleased that as part of our commitment to delivering net zero carbon assets, these buildings will have the highly coveted LEED Silver certification, based on their commitment to energy efficiency and to the environment.”
In line with the tenants’ demands for increased flexibility, the warehouses in Illescas can be divided into up to six modules from 14,000 sq m each. Tha aim is to deliver flexible assets, attractive for several tenants and able to provide increased asset management opportunities, de Roda said.
Illescas is one of the main nodes of the second logistics ring in the so-called ‘central zone’ of Spain and has direct access to the A-42 highway that connects Madrid with Toledo. This area has become one of the most strategic and demanded by distribution and logistics companies due to its excellent connections, proximity to Madrid and the competitiveness of its assets compared to those in other nearby locations.
Large consumer and distribution companies such as Amazon, Michelin, XPO, Airbus, Dia, Zalando, Seur and Correos, among many others, are already located there.
With this transaction, Patrizia further strengthens its presence in the logistics segment in Spain, in which it already has assets with a total area of more than 620,000 sq m throughout the country. As a whole, the logistics segment represents around 40% of the total assets Patrizia manages in Iberia, which have a value in excess of €1.4 billion.
Patrizia has grown its logistics portfolio by 84% since the end of 2019, reaching AUM of over €5.8 billion. The group believes that aside from being a safe haven investment and a key contributor to local resiliency, logistics assets display a strong demand and low vacancy rates across Europe, and their yields consistently outperform those by other asset classes.