M&G Real Estate has acquired the Ontígola Logistics Platform in Madrid’s south corridor for €40.6 mln from global investment management firm Barings.
The deal brings M&G's total exposure to Spain to circa €1 bn. The acquisition has been agreed on behalf of the €4.4 bn M&G European Property Fund, managed by David Jackson and Simon Ellis.
Fully pre-let to Iberian leading pet care group Iskaypet on a 9-year lease, the newly-built asset is Silver LEED certified. The scheme comprises two large-scale warehouses totalling 48,700 m2. The first warehouse will be used for Iskaypet’s e-commerce operations, and the second for servicing the company’s network of retail outlets in Spain and Portugal.
Barings acquired the land for the development in May 2019 and subsequently entered into a development agreement with developer, Logistik Services, for the construction of the project.
The asset is located in the Dehesa de la Plata II industrial park at a strategic cross-section of road networks. Other occupants of the industrial park include large scale logistics companies such as DHL and CEVA Logistics.
Federico Bros, head of investment and asset management for Iberia at M&G Real Estate, said: 'This acquisition brings M&G Real Estate’s logistics footprint in Spain to 330,000 m2, reflecting the strong fundamentals we see in this sector.
'The spectacular growth in Spanish e-commerce in 2020 has brought us closer to European levels, but there is still significant room to grow until we see the number of Spanish internet shoppers reaching the levels we are seeing in France, Germany and the UK. This growth will continue to underpin high demand for strategically-located, modern logistics platforms like Ontígola, supporting positive rental growth for our investors.'
Added Valeria Falcone, managing director & head of value add investing Europe at Barings: 'This is the fifth sale we have made on behalf of BREEVA I, as we realise our investments following the close of the fund and the gradual completion of our business plans.
'The sale adds to the fund’s strong performance to-date, which continues to outperform industry benchmarks. We remain very active in the investment market, with the strong returns generated by this project endorsing our conviction in European logistics, which continues to play an important part of our broader strategy.'
Pérez-Llorca and Arcadis acted as legal and technical advisors to Barings on the sale.
