P3 Logistic Parks, the long-term investor-developer of European logistics properties has strengthened its presence in the Mediterranean corridor with the acquisition of a Spanish logistics portfolio from a joint venture among KKR, a leading global investment firm, and Round Hill Capital (“RHC”), a real estate investment, development and asset management firm, and Pulsar Properties, for approximately 108 million euros.
The portfolio comprises over 112,000 sqm of big box logistics space, spanning five development schemes, throughout the Greater Madrid Region (82% of lettable area) and Barcelona Region (18% of lettable area). The portfolio is fully leased. With this acquisition, P3 actively reinforces its presence in Southern Europe, increasing its Gross Lettable Area in Spain to a total of 676,000 sqm.
Javier Mérida, Managing Director of P3 Logistic Parks Spain, comments: "Logistics plays an important part in the recovery of both the Spanish and European economy. Opportunities such as this acquisition are fundamental to P3, not only in maintaining our high standards of quality and servicestoward our customers, but also to be able to continue working on offering the best properties in key logistics areas such as the Central and Mediterranean corridor."
The portfolio is strategically located in strong and established logistics markets, in areas with excellent transport connectivity, deep tenant demand, low vacancy rates and a very constrained supply of available logistics buildings and development land.
The portfolio’s five big box logistics assets are located in Torija (Guadalajara), Fontanar (Guadalajara), Ontigola (Toledo) and Parets del Vallés (Barcelona).The two largest assets are located in Torija, north east of Madrid, covering more than 50,000 sqm.
Otis Spencer, CIO of P3 Logistic Parks, says: “We were pleased to cooperate with KKR, Round Hill Capital and Pulsar Properties on the successful acquisition of this Spanish logistics portfolio. Logistics remains one of the most attractive asset classes for investors, and P3’s ability to source and close deals locally, with on the ground investment expertise, puts us in a strong position for future growth.”
P3 has several developments underway currently in Spain, including a 77,000 sqm warehouse on the outskirts of Castellón, north of Valencia, scheduled for delivery in Q1 2022. P3 also extended its footprint on the Central Iberian Platform, south of Madrid, with the acquisition of a further 80,000 sqm of land adjacent to its existing park, P3 Illescas.
The deal was completed with the support of Herbert Smith Freehills as legal advisor, Arcadis as technical advisor, and PWC as tax and financial advisor.
