AEW buys brownfield development site for Madrid logistics hub

AEW buys 50,000 sqm brownfield development site for Madrid logistics hub

AEW has acquired a 50,000 sqm brownfield development site in a prime logistics location in Madrid on behalf of Logistis, its pan-European logistics fund.

The off-market transaction has been undertaken in joint venture with Iberian Capital Corporation (ICC) and follows the €500 million of new equity raised for the fund in July last year, bringing the fund’s net equity to over €2.7 billion.

The acquisition will allow for the development of c. 30,000 sqm of purpose built, modern urban logistics space in Torrejon de Ardoz, one of Madrid’s strongest logistics locations along the A2 corridor. This project will accommodate requirements from 1,500 sqm and above and will be a complementary offering to Citydox, another of the Fund’s assets currently under development in the vicinity and aimed at providing big box warehouse space.

Ludovic Bernini, Fund Manager of AEW Logistis said: “Having raised another significant tranche of equity for the Fund last summer, the profile of this investment is fully in line with our build-to-core strategy. We are very happy to have teamed up with ICC to secure this opportunity as we continue to diversify and expand Logistis’ footprint across Europe’s main logistics hubs.”

Nikos Koulouras, Managing Director, Head of Investments at AEW added: “We are pleased to have secured, along with ICC, another fantastic off-market development opportunity in Madrid’s first ring on the A2. We continue to actively source standing or development last-mile logistics assets in and around Spain’s larger cities. While historically the interest in logistics has been centred around the three largest markets, we are also interested in regional cities and main logistics corridors. We are expecting to see increased demand over the coming years and our aim is to offer modern, sustainable buildings that will meet occupier appetite as we grow our logistics portfolio in Spain.”

Iban Ortuzar, Partner at ICC declared: “With this project, ICC continues with its growth strategy based on developing logistics platforms of the highest quality and sustainability in excellent locations, together with international institutional funds experienced in logistics Real Estate investments”

Since the platform was launched in 1999, Logistis has built a 3.4 million sqm portfolio that comprises 117 logistics assets over 51 sites across Europe with a total value of approximately € 4.1 billion and an ongoing development pipeline of around €1 billion.

AEW said the Logistis portfolio has 95% stabilized occupancy and an average annual distribution yield of around 5%.