Barings, acting on behalf of an institutional investor, has acquired an 85,000m² plot of land in the southern part of Madrid, Spain. The company will partner with a developer to build two independent warehouse buildings totalling 49,500m² of lettable space. The two warehouses will comprise 17,500m² and 32,000m² and can be leased/operated independently. Both properties will be completed by the third quarter of 2020. The purchase price was not disclosed.
The asset is located in Ontígola, a prime logistics area for national distribution in the southern A-4 corridor of the city, which connects Madrid to the south of Spain and the southern seaports. The A-4 corridor is one of the two prime industrial markets in Madrid and is increasingly favoured due to its ability to serve the entire Iberian Peninsula and important logistic tenants located in the area. The property benefits from direct access from both the A4 motorway and R4 toll-way (connecting Madrid with Southern Spain), and is close to M-50 and M-45 ring roads.
Adolfo Favieres, Managing Director, Country Head Real Estate for Spain, Barings, said: “This is an excellent opportunity to develop a grade A, logistics warehouse in a strongly demanded logistics area, in conjunction with a well-known logistics developer in Spain. The area is characterised by big block space searches, which both buildings will suit perfectly. This is the third logistics transaction in Spain after acquiring two logistics asset in Zaragoza and Ontígola for a core investment strategy. This particular transaction shows Barings’ ability to move up the risk curve to capture the additional value and we look forward to partnering with developers on other product types, such as residential or office."
