TH Real Estate has completed its first acquisition on behalf of its European Logistics Fund (ELOF), a logistics centre in the greater Madrid area for €21.5 mln.
Acquired from a private vendor, the distribution centre is located in the Valdemoro industrial zone, about 30 kilometres south of central Madrid. Built in 2009, the property occupies a 54,000 m2 land plot. The gross lettable area of 35,000 m2 can be divided into four separate modules of 8,000 m2 of storage area and 675m2 of office space each.
Tim Hennes, fund manager for ELOF at TH Real Estate, commented: 'Together with Barcelona, Madrid is a key logistics site in Spain due to its location in the heart of the country. This asset fits perfectly with our strategy for the fund and we are very pleased to have secured such a well-connected and customisable high-spec logistics asset as our first acquisition.'
Launched in 2016, ELOF invests in high-end logistics assets in Spain, France, the Netherlands and Italy, all of which show a rising demand for logistics facilities. The fund is targeting a portfolio size of more than €400 mln, and is designed for German clients who wish to invest in a low-risk asset class. Its investors include pension funds, insurance companies and banks.
The Madrid property is occupied on long-term leases by ECI Business Solutions and Bricor, two subsidiaries of Spanish department store chain El Corte Inglés. The centre serves as the retailer's logistics hub for the Madrid metropolitan region.
Law firm Dentons served as legal advisor to TH Real Estate and Proequity acted as broker. The technical and environmental due diligence was conducted by TÜV Süd Advimo.
