Aberdeen Standard European Logistics Income (ASLI) has acquired a portfolio of newly constructed last-mile logistics warehouses in Madrid, Spain, for €227 mln, representing a net initial yield of 3.4%.
The portfolio comprises eight assets in total with excellent sustainability credentials, located in the first ring of Madrid, Spain.
The 122,000 m2 portfolio consists of four phases built between 2019 and 2021. Phases I-III comprises seven newly constructed logistics warehouses. Phases I and II are certified LEED Silver, while phase III is certified LEED Gold.
Phase IV, due for completion in the second quarter of 2022, comprises one logistics warehouse with accompanying multi-level delivery van parking station which will be leased to Amazon. It is targeting a certification of BREEAM Very Good.
Tenant roster
The portfolio is let to five tenants, with Amazon Europe accounting for 43% of the total portfolio rental income. Global food retailer Carrefour, UK electric delivery vehicle maker Arrival and Spanish companies Talentum and MCR comprise the remaining tenants.On completion of phase IV, Amazon is expected to become ASLI’s largest tenant by rental income.
All leases are upward only, annual inflation linked, with strong rental growth potential. There is an unexpired lease term of 14.8 years to expiry and 8.7 years to break.
The portfolio is located in Gavilanes, one of Madrid's major last-mile logistics hubs, with access to 6 million people within a 30-minute drive time.
Tony Roper, chairman of ASLI, commented: 'Raising equity in September was a significant milestone for the company and reflected our strong conviction in the Continental European logistics proposition.'
Evert Castelein, investment manager for ASLI, added: '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.'
