Azora, the Madrid-based European private equity real estate manager and one of Spain’s leading real estate investors, together with PGIM Real Estate, the real estate investment business of PGIM, the US$1.5 trillion global investment management businesses of Prudential Financial, Inc., announce the launch of PGIM Real Estate Última Milla, S.L. (the “Joint Venture”), a new Spanish-focused last-mile logistics Joint Venture. PGIM Real Estate, on behalf of its European value-add strategy, and Azora, will jointly fund the Joint Venture, while Azora will source, underwrite and manage the portfolio. This Joint Venture will be the first pure-play investment vehicle focused on last-mile logistics assets in Spain which is one of the largest and most attractive European markets for this asset class.
The demand for high quality last mile logistics in the Spanish market has become even more apparent as COVID-19 has accelerated the already strong structural trends driving the sector. Spain’s historically low e-commerce penetration rate, which, even pre-COVID-19, was expected to grow by 11% per annum, combined with a wider focus on on-shoring and efficient supply chains as a result of the pandemic, is expected to drive increased demand for fit-for-purpose logistics space in the coming years. These factors, combined with a scarcity of high quality, sustainable stock and, in some areas, available land for development, are expected to provide strong tail winds for the sector into the future.
Source : Joint release