Barings lands logistics asset in Madrid for €43m

Real estate investment manager Barings has acquired a logistics asset in Madrid, Spain for €42.8 mln in an off-market transaction.

The deal for the 48,000 m2 property, made on behalf of institutional investors, has been structured through a sale and lease-back agreement.

The tenant, one of the largest Iberian logistics group, which has occupied the asset for over 17 years, will enter into a new 20-year lease. Barings has also acquired a plot of land adjacent to one of the existing units, which is already zoned for logistics and could accommodate up to 10,500 m2 of additional warehouse space.

Adolfo Favieres, managing director, real estate country head Spain at Barings said: 'Favourable demographic drivers and rising e-commerce penetration continue to underpin the growth of the logistics market in Spain, a trend we expect to continue over the medium to long term.

'This portfolio is perfectly aligned to our core investment strategy, offering long and sustainable income from a good covenant, with a tenant that has heavily invested in these assets which are key to their operations in Spain.'

Situated 30 km from the city centre, the portfolio also offers 400 parking spaces.

Gunther Deutsch, managing director, head of real estate transactions – Europe for Barings, added: 'After acquiring a speculative logistics development in Ontigola in 2019, this represents our fourth acquisition in Spanish logistics, of which three have been for our core strategy.

'We are very experienced in structuring sale and lease back transactions with owner occupiers which we have demonstrated already in Germany, Italy and now Spain.

'We continue to have a lot of appetite for single logistics asset transactions, as well as pan-European portfolios, in our focused markets of Finland, Sweden, Netherlands, UK, Germany, Italy, France and Spain across the risk spectrum from core to opportunistic.'

Barings was advised by Arcadis, Dentons and Deloitte.


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