Spanish mall operator Neinver sees great growth opportunities in the logistics property sector and is exploring options to expand across Europe, according to the group's chief financial officer Carlos González.
Spanish mall operator Neinver sees great growth opportunities in the logistics property sector and is exploring options to expand across Europe, according to the group's chief financial officer Carlos González.
The company announced in January that it was setting up a logistics joint venture with US private equity group Colony Capital to target €200 mln at European logistics.
It has already signed the first acquisition in the Iberian Peninsula with the purchase of a portfolio of 16 logistics sites in Spain and Portugal in a sale-and-leaseback transaction.
The combined area of the facilities is almost 110,000 m2.
As part of the JV, Neinver will manage the assets, while Colony Capital will contribute its real estate and financial expertise to grow the portfolio.
PropertyEU: Neinver has mostly been known as a European retail specialist. What has prompted the decision to expand in the logistics market?
González: It is true that in recent years, Neinver's strategy has been centred on the retail sector, in which we are now a renowned company in Europe. However, the company has developed and managed industrial properties ever since it was founded. Neinver's roots are precisely in developing industrial and logistics properties, with a strong focus on turn-key products.
By signing the joint venture agreement with Colony Capital – one of the world’s largest private equity property investment firms – Neinver continues to pursue its growth strategy in this sector while reinforcing its position as a developer and manager of property assets.
PropertyEU: How big was Neinver's logistics portfolio before launching the JV?
González: Since founding in 1969, the company has developed more than 1.5 million m2 of industrial property and managed about 53,000 m2 of industrial space.
PropertyEU: What are the main opportunities in the logistics market?
González: Logistics in Spain and Portugal has now greater growth potential than almost any other [real estate] market, since traditionally it is one of the sectors that benefit first from the economic recovery. Neinver's expertise in this market and its industry knowledge make it an interesting sector in which our company has been involved with from the start. We think this is the right time to invest in profitable, productive, assets that are under development. That is the purpose of this strategic partnership with Colony Capital.
PropertyEU: Can you provide more details about the portfolio recently acquired?
González: The portfolio consists of 16 logistics centres totalling 110,000 m2 located in various parts of Spain and Portugal, such as Madrid, Zaragoza, Seville, Valencia and Lisbon.
PropertyEU: What skills does each partner bring to the JV?
González: Neinver will manage the assets that become part of the joint venture, as an expert in the logistics and industrial sector. Colony Capital brings its investment experience and capacity as one of the world’s top private-capital firms, with more than 15 years’ experience in Spain.
PropertyEU: Will the JV focus exclusively on the Iberian market or are there plans to expand beyond Spain?
González: The initial transaction focuses on the Iberian Peninsula, but we are also exploring other options in the broader European market.