Speculative development of logistics facilities to meet the expected demand from recovery in European markets was a key investment tip during PropertyEU's European logistics briefing in June.

Speculative development of logistics facilities to meet the expected demand from recovery in European markets was a key investment tip during PropertyEU's European logistics briefing in June.

The recommendation came as a panel of real estate professionals were asked how they would invest a fictional €500 mln in the sector in light of signs of economic recovery in many European markets.

Damian Harrington, regional director of research at Colliers International, said he would leverage the €500 mln and develop distribution centres 'where there aren't any', such as in and around Galicia in northern Spain.

'Then, I would look at the spokes in and around urban areas where that e-fulfilment product isn't yet available. I would be looking at smaller units there and I am pretty sure I could spend it quickly,' Harrington said.

Tia van Beek, Netherlands country manager at logistics specialist Goodman, would also leverage and invest in prime development locations suitable for e-commerce. 'I might also consider brownfield sites, but obviously only those with good connectivity by road and rail. The Netherlands ticks a lot of boxes for this approach.’

‘I would put part of the money in speculative development in certain markets and go on holiday for the rest of my life,' quipped Jeroen Smit, managing director of Benelux, Spain & Italy at Logicor, Blackstone's European logistics vehicle. 'Alternatively I would invest the money in markets (such as Italy) where I can still acquire assets at below replacement cost.’

Hadley Dean, managing partner for Eastern Europe at Colliers International, said his approach would be even more bullish and focused on Spain, a market that is recovering but has yet to 'bounce back' fully. 'I would take the money in order to control as much industrial land as I could, and then do pre-leases on the back of that.'