Barings Real Estate Advisers, real estate investment managers, announces that it has acquired from GLL Real Estate Partners a fully let logistics asset in Madrid for €35m as part of its core investment strategy across Europe.
The 56,000 m² unit is fully let to Ceva, a major global logistics and freight management business, which recently renewed its lease. The property is strategically located in a prime distribution area with direct access to the A4 corridor which is south of the Spanish capital as well as having direct access to the R4 toll-way, connecting Madrid with southern Spain. The area is heavily under-supplied while factors such as forecast GDP growth, higher employment levels and an increasing internet sales penetration rate provide a strong macro environment for the investment.
In February 2017, Barings Real Estate Advisers announced that, as part as a part of the ongoing expansion of its European offering, it had appointed Carlos de Oya as Director for asset management in Spain. Barings Real Estate Advisers first invested in the Spanish market with the acquisition of a prime retail asset in Madrid in July 2016, following the opening of the Madrid office in late 2015.
Barings Real Estate Advisers is one of the world’s largest diversified real estate investment managers. Part of Barings LLC, the group is an active investor in private and public, equity and debt markets, and provides core, value-added, and opportunistic investment and advisory services to institutional and other qualified investors around the globe.
Adolfo Favieres, Country Head of Spain at Barings Real Estate Advisers, said: “We believe in the attractive supply / demand dynamics in the Madrid logistics market which is underpinned by an improving economy. The continued growth in market share from online sales is likely to significantly impact the demand for good quality and well located logistics units such as this core investment.”
Gunther Deutsch, Head of Transactions Europe at Barings Real Estate Advisers, said: “This transaction, our second in Spain within just a few months, highlights our strong appetite for investments in the region. Our main focus is on the retail, logistics and office sectors on a risk spectrum from core to value add, as well as being able to forward fund developments.”