Aberdeen Standard European Logistics Income (ASLI) has acquired a portfolio of newly constructed last-mile logistics warehouses in Madrid for €227m.

The London-listed real estate fund used all of the proceeds from a recent equity raise to invest in “a highly sustainable” portfolio in the growing e-commerce market of Spain’s capital city.

The portfolio includes seven newly constructed logistics warehouses and one warehouse under development with an accompanying multi-level delivery-van parking station – all within the first ring of Madrid, in Gavilanes.

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

When the warehouse development is completed in the first half of 2022, Amazon is expected to become ASLI’s largest tenant by rental income.

Tony Roper, chairman of ASLI, said: “Raising equity in September was a significant milestone for the company and reflected our strong conviction in the continental European logistics proposition.

“Having stated an ambition to scale the company, this substantial acquisition enables us to invest the equity proceeds within three months and provide shareholders with further exposure to high-quality, well-located logistics assets with inflation-protected income.”

Evert Castelein, investment manager for ASLI, said: “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.

“This acquisition further increases the weighting of the company’s assets to last-mile logistics, where a number of drivers are forecast to provide strong future rental income growth.

“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.

“Our Madrid-based transaction team played a crucial role in securing this transaction and completing the required due diligence over a short timescale.”