Investment firm KKR has formed a logistics investment venture with Round Hill Capital and Pulsar Properties to target assets in Spain and southern Europe.

Pulsar Iberia Logistics, the newly formed vehicle, has made its first investment in Spain with an agreement to forward buy three warehouse developments in Madrid and one in Barcelona.

The four logistics developments, with over 94,000sqm of space, are being acquired from and constructed by local developer Pulsar Properties.

In a joint statement, the trio said the partnership will seek further logistics investments across select areas of Spain and southern Europe as part of the expansion of its southern European logistics platform.

Seb d’Avanzo, a director at KKR, said: “We are delighted to have acquired these four high-quality Spanish logistics warehouse developments, our joint venture’s first investments in Spain’s logistics sector, a market which is continuing to exhibit attractive investment fundamentals and strong future growth drivers.

KKR’s investment was made through its Real Estate Partners Europe fund.

“KKR’s European real estate platform has an impressive track record in executing partnership deals, and we look forward to working closely with Pulsar Properties and Round Hill Capital to expand our footprint in logistics,” d’Avanzo said.

Jose Ma Alaña Arrinda, founder and CEO of Pulsar Properties, said: “This vehicle [Pulsar Iberia Logistics], whose medium-term goal is to acquire 400,000sqm of logistics space benefits from having a seed portfolio of four logistics platforms in different locations with a total area of more than 94,000sqm.”

Michael Bickford, founder and CEO of Round Hill Capital, said: “Round Hill has been evaluating the Spanish and southern European logistics real estate markets for several years and we have been strengthening our existing management expertise and capabilities in Spain.

“In joint venture with KKR, we have significant dedicated capital to deploy in select areas of Spain and southern Europe, which continue to see long term supply constraints of well-located high-quality logistics assets with excellent transport connectivity coupled with deep and increasing tenant demand.”

Bickford said Round Hill is continuing to look to make further investments in logistics property in Spain, and across wider southern Europe in line with the company’s existing growth strategy.