CBRE Global Investors has established a Joint Venture with Spanish logistics developer and manager Montepino to develop a portfolio of prime assets in core locations in Spain, initially focused on the greater Madrid market.
The JV has been launched with a portfolio of four high-quality development projects all of which are located in the prime Madrid logistics locations along the Corredor de Henares and two standing assets in Zaragoza totalling 245,000 m². The portfolio is already 80% pre-let to leading logistics operators with a WALT of 11 years at completion.
In addition, the JV has already identified a pipeline of 11 development opportunities, totalling in excess of 300,000 m².
Charles Baigler, Fund Manager, CBRE Global Investors’ Europe Value Partners fund series said: “This joint venture perfectly fits with our European value-add strategy of creating core assets in supply-constrained markets. The logistics sector is a key focus for the fund series and we are very pleased to be in partnership with Montepino, who is a best in class logistics developer with a proven track record of sourcing and delivering high-quality assets in prime locations.”
Antonio Roncero, Head of Transactions Iberia, CBRE Global Investors added: “This is a significant logistics deal for the Spanish market. We have seen the market evolve significantly over the past years with increasing demand for high-quality space since 2015 and prospects remain strong.”
Juan Jose Vera, Vice President of operations, Montepino, stated that the creation of this joint venture with CBRE Global Investors facilitates the Spanish firm "to maintain its leadership in the Spanish logistic market ", as well as "a sufficient contribution of economic resources that allow us to grow and develop the significant projects we have planned for the next few years."
The Vice President said that the logistics sector is currently experiencing a real surge in tenant demand, and that is why transactions like this one are necessary “to launch important logistic projects for large national and international firms." Juan Jose highlighted that these projects "represent a great complexity as far as technique and design are concerned".
Finally, Juan Jose noted that 2017 has been "a great year" for Montepino, having achieved over "40% of market share" in delivering logistic development solutions, in central Spain, data which shows the strong momentum the firm is currently undergoing.
CBRE advised CBRE Global Investors on the transaction.