Panattoni, the logistics-industrial real estate developer, has presented its balance sheet for the first half of 2024 and shared its forecasts for the second half of the year, highlighting the start of its third project in Portugal. The company plans to invest more than 590 million euros in 2024 to strengthen its presence in the Iberian Peninsula.
The €590 million investment will be allocated to six projects in Spain and Portugal. These include Panattoni Park Miranda de Ebro, with a gross leasable area (GLA) of 133,000 square metres, and Panattoni Park Porto Valongo, which will have two buildings of 27,000 and 47,000 square metres respectively. In addition, Panattoni will develop its first Data Centre in Cerdanyola del Vallés on a 60,000 square metre plot, Panattoni Park Lisbon-City with 85,000 square metres of GLA, Panattoni Park Lisboa-Norte with 35,000 square metres, and Panattoni Park Alzira with 40,000 square metres of GLA.
As for the Spanish real estate market, during the first quarter of 2024, the levels of contracting and transactions of 2023 were maintained, although there was a slowdown in decision making due to various economic factors. Prime rents increased in Barcelona (8.50 euros per square metre per month), Madrid (6.40 euros) and Valencia (5.50 euros). However, contracted logistics space decreased in Barcelona and Valencia, but increased in the central area, and is expected to continue to grow in areas with limited supply.
In terms of investment, growth was 9%, concentrated in Madrid, Barcelona and Valencia. Interest is focused on value-add products, while yields are at record highs, with possible compression if the European Central Bank cuts interest rates. Sale & leaseback (S&LB) transactions remain in demand, while core assets face more difficulties. Despite the economic challenges, the logistics sector is expected to continue to present growth opportunities and active demand in 2024, with 34% of investors showing a preference for this sector, followed by residential (28%) and office (17%).
The potential for data centres in Spain
Spain also has the potential to become an international data centre hub thanks to its strategic geographical position, its fibre data network and access to fast, affordable and sustainable energy. Panattoni has recently acquired an area of 60,000 square metres in Cerdanyola del Vallés (Barcelona) to develop the largest data centre in the region, with an estimated investment of 300 million euros.
The first phase of the project, which will cover 42,000 square metres, is scheduled to begin at the end of this year. This technology campus will have an installed power of 42 MWs and will be strategically located 20 km from Barcelona, ensuring excellent connectivity. The engineering and design of the project will be carried out by Quark, and is expected to make a significant contribution to the digital infrastructure in Southern Europe and North Africa.
Panattoni's portfolio in the Iberian Peninsula
Since its inception four years ago, Panattoni has followed a strategy of geographical diversification in the Iberian Peninsula. Currently, the company has 14 completed projects in 12 Spanish provinces, totalling 534,000 square metres of GLA. In this last period, Panattoni has continued its expansion in the Portuguese market with its third project in the north of Lisbon, which will have 34,000 square metres of GLA. This project is in addition to the 74,000 sqm under development at Panattoni Park Porto Valongo and the recently announced Panattoni Park Lisbon-City, which will have a surface area of 85,000 sqm and whose works will start in 2025. With this last project, the company is now present in four Portuguese provinces.
Panattoni also has 263,000 square metres of buildable floor space available for turnkey projects in locations such as Valencia, Vitoria, Murcia, Torija, Illescas, Madrid, Miranda de Ebro, Lisbon and Barcelona. These projects will be developed as agreements are closed with end users. In addition, the company offers immediately available spaces for rent in its parks in Vitoria-Gasteiz, Zaragoza, La Bisbal del Penedés (Tarragona), Illescas and Oporto.
Panattoni's projects, BREEAM Very Good and Excellent certifications
Panattoni has implemented sustainable building practices, with all of its projects certified at BREEAM 'Very Good' or 'Excellent' level. Notable examples include Panattoni Park Illescas, Panattoni Park Miranda de Ebro and Panattoni Park Lisbon-City.
"During the past year, Panattoni has continued with its roadmap within its growth objectives in the Iberian Peninsula. The consolidation of projects, together with the development of new markets, both in Spain and Portugal, reinforce our positioning as a reference in the sector in terms of development capacity, innovation and commitment to our clients. Our capacity for diversification and resilience, together with our commitment to our communities, are the keys to our continued commitment to strategic locations and state-of-the-art buildings," said Gustavo Cardozo, CEO of Panattoni.
