Boreal IM and Cadillac Fairview’s European logistics investment joint venture has added a €45m asset in Spain’s capital to its portfolio.

The joint, created last year, has acquired a 54,500sqm warehouse currently under development in Alcalá de Henares, Madrid from Pavasal. Construction of the warehouse is expected to complete by the end of 2024.

The deal represents the partnership’s third acquisition in Spain, a country the venture expanded into in January this year. Previous deals in Spain were made in Bilbao and Barcelona.

The acquisition also lifts the partnership’s Spanish portfolio to 100,000sqm.

Nikos Koulouras, partner at Boreal IM, said: “The Henares Corridor is a fantastic location and its appeal to both occupiers and investors is illustrated by its high leasing and transaction volume.

“Our team has significant experience and local contacts in Spain and we will continue to look for new opportunities there, building on the robust foundation created with our acquisitions in Barcelona and Bilbao over the last year.”

Jenny Hammarlund, EVP of investments at Cadillac Fairview, said: “This acquisition underlines our joint belief in the fundamentals of the Spanish market and Boreal’s ability to capitalise on opportunities in the region.

“We’re glad to now have a foothold in the Madrid logistics market, complementing our existing portfolio, and to add to our stable of BREEAM Excellent assets.”

Last year, Boreal IM and Cadillac Fairview, the real estate arm of Ontario Teachers’ Pension Plan, invested €250m to buy assets in the UK and Netherlands, as part of the partnership’s plan to create a €3bn pan-European logistics portfolio. In January, Boreal IM and Cadillac Fairview expanded the joint venture into Spain and France with the acquisition of assets.

The joint venture has so far announced acquisitions in four of its six target locations since its 2022 formation. Germany and Italy are its other target markets.

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