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PATRIZIA AG, a leading partner for global real assets, has forward purchased a logistics warehouse development in Illescas, Spain, for approx. EUR 56m, on behalf of its institutional clients. The asset will have a combined surface of 92,000 sq m and is scheduled to be completed by the first quarter of 2023.
The investment was made on behalf of a PATRIZIA logistics flagship fund for its institutional clients and further strengthens the already significant logistics portfolio of the firm.
In order to deliver flexible assets, attractive for several tenants and able to provide increased asset management opportunities, the warehouses in Illescas can be divided into up to six modules from 14,000 sq m each.
Illescas is one of the main nodes of the second logistics ring in the so-called ‘central zone’ of Spain and has direct access to the A-42 highway that connects Madrid with Toledo. This area has become one of the most strategic and demanded by distribution and logistics companies due to its excellent connections, proximity to Madrid and the competitiveness of its assets compared to those in other nearby locations. Large consumer and distribution companies such as Amazon, Michelin, XPO, Airbus, Dia, Zalando, Seur and Correos, among many others, are already located there.
Since year end of 2019, the AUM of PATRIZIA’s logistics segment has grown by 84% to over EUR 5.8 billion. Besides being a ‘safe haven’ investment and a key contributor to local resiliency, logistics assets display a strong demand and low vacancy rates across Europe, and its yields consistently outperform those by other asset classes.
With this transaction, PATRIZIA further strengthens its presence in the logistics segment in Spain, in which it already has assets with a total area of more than 620,000 sq m throughout the country. As a whole, the logistics segment represents around 40% of the assets that PATRIZIA manages in Iberia, whose total value exceeds EUR 1.4 billion.