Pan-European logistics property investor-developer P3 has started its latest phase of expansion with the acquisition of a 322,500 m2 portfolio of 11 logistics and distribution warehouses in Spain from Gore Spain Holdings SOCIMI I, S.A.U. The purchase price was agreed at €243.35 million.
The portfolio includes assets in key strategic logistics locations around Madrid, Zaragoza, Toledo and Guadalajara as well as the coastal cities of Valencia in the east and Biscay (near Bilbao) in the north.
The purchase, which comes shortly after P3 announced record performance across Europe in 2016, takes P3’s asset base in Spain from just over 70,000 m2 to nearly 400,000 m2 and is one of the biggest portfolio transactions in Spain in recent years.
David Marquina, P3’s Managing Director in Spain, said: “This is a good opportunity to reinforce our footprint in Spain’s central logistics corridor, which connects Madrid, Zaragoza and Barcelona. Our next target is to increase our presence in the Mediterranean corridor, around Barcelona & Valencia and expand to Málaga. We will be focusing on acquiring institutional-quality logistics assets and off-market deals, where P3’s long-term investor-developer approach can make a real difference.
“There are several Build-to-Suit projects and single asset acquisitions in the pipeline which will allow us to grow to 500,000 m2 of high quality, well located logistics space under management in Spain before year end.”
The properties range in size from just over 7,500 m² in the Getafe area of Madrid to over 80,000 m² in Zaragoza. They are all fully let to blue chip domestic and international companies including DHL, which is also a P3 customer on seven other parks in four countries, Orangina Schweppes Espana and office products etailer Staples.
In addition to the built assets, two of the warehouses have adjacent land totalling over 26,000 m², with potential for P3 to develop.
Commenting on the purchase, P3 CEO Ian Worboys said: “The Spanish economy is expanding and we identified the country as a key target for P3 in 2017. We’re delighted to have been able to acquire this portfolio which makes us one of the leading players in Spain and is in line with our growth strategy across Europe as a leading property investor-developer.”
P3 was advised on the purchase by CBRE, legal consulting was provided by Herbert Smith Freehills (HSF).