The Boreal IM & Cadillac Fairview joint venture (JV) has completed its third transaction in Spain, with the purchase of a warehouse in Madrid’s largest logistics market for c. €45m, due to be completed in 2024.
Acquired from established developer Pavasal, the 54,500m2 asset is located in Madrid’s A-2 logistics corridor. It is targeting a BREEAM Excellent rating, complete with rooftop photovoltaic installation and electric vehicle charging.
The acquisition takes the JV’s Spanish portfolio to 100,000m2, with further assets in Bilbao and Barcelona. Nikos Koulouras and Xavier Aubrun, who spearheaded the transaction, have a sizeable track record in the Spanish market, having made 12 investments totalling €500m in the logistics space there prior to joining Boreal.
The asset is located within the second ring of Madrid in Alcalá de Henares, one of Spain’s most established logistics clusters connecting Madrid to Barcelona. Also known as the Henares Corridor, it accounted for 75% of Spanish logistics leases signed in Q1 2023, according to BNP Paribas Real Estate.
Other occupiers in the area include Amazon, Carrefour, Telefonica, Lidl, and Conforama.
In addition to the highest sustainability credentials, the asset will have a flexible design and layout, allowing it to cater to requirements ranging from 5,000m2 50,000m2.
Boreal IM was advised by BNP Paribas, Linklaters, Hollis Global, and PWC.
Nikos Koulouras, Partner at Boreal IM, said: “We are very pleased to be partnering with Pavasal on this development. Spain is a key market for us, with strong fundamentals as well a low e-commerce penetration relative to other leading European economies. The Henares Corridor is a fantastic location and its appeal to both occupiers and investors is illustrated by its high leasing and transaction volume. Our team has significant experience and local contacts in Spain and we will continue to look for new opportunities there, building on the robust foundation created with our acquisitions in Barcelona and Bilbao over the last year."
Jenny Hammarlund, Executive Vice President, Investments, Cadillac Fairview, said: “This acquisition underlines our joint belief in the fundamentals of the Spanish market and Boreal’s ability to capitalise on opportunities in the region. We’re glad to now have a foothold in the Madrid logistics market, complementing our existing portfolio, and to add to our stable of BREEAM Excellent assets."
