AEW has launched a new value-add Spanish logistics partnership, Relog, with €150 million of equity commitments from the Teacher Retirement System of Texas (TRS) and Migdal Insurance.
AEW intends to build Relog into a large-scale Spanish logistics platform. The initial commitments provide c. €400 million of investment capital which will target infill and last-mile assets that accommodate the growing demand from retailers and third-party logistics providers for well-located space close to urban populations following a fundamental shift in consumer habits.
AEW and Vega Partners, Relog’s local operating partner, have completed the first acquisition on behalf of RELOG with the purchase of a c. 9,200 sqm asset which is fully let to Amazon in Alcala de Guadaira, 10km from Seville city centre. The asset is strategically located in a consolidated logistics zone and a strategic last-mile location near the SE-40 and A-92 highways. The asset has been fully refurbished by Amazon, which has been in occupation since 2020, and includes a land plot of over 25,000 sqm, presenting an opportunity to develop a further c. 10,000 sqm of logistics space in the future.
The partnership will invest in both income-producing assets and portfolios, as well as properties with value-add potential and new developments around Spain’s major cities, including Madrid, Barcelona and Valencia, AEW said.
Investments in smaller but strategically important locations, such as Zaragoza, Seville, Malaga, Bilbao and the Basque Country will also be considered.
In line with AEW’s broader ESG strategy, a focus will be placed on improving the environmental credentials of the portfolio through renovations and new developments.
Vega Partners is a newly formed logistics asset and investment manager specialising in the Spanish market. Founded by Juan-Carlos Ortega, formerly Director of Industrial and Logistics at Neinver, and Alain Chetrit, who previously led Colony Capital’s Spanish business, the team has 36 years’ combined experience in logistics investment, development and asset management in Spain. The partnership and AEW are also stakeholders in Vega.
Nikos Koulouras, Head of Investments for Private Equity Funds at AEW, commented: “Beyond Madrid and Barcelona, we are seeing increased occupier and investor interest in markets such as Valencia, Seville, Malaga and the Basque Country. With the expectation that occupiers will need further space close to major conurbations and last-mile destinations, our ambition is to scale Relog as quickly as possible to meet this demand whilst generating sustainable returns for our investors. The acquisition we have made in Seville is the first step towards achieving that goal and we are already progressing a strong pipeline of further opportunities.”
“AEW has a significant track record in the logistics space and as we continue to expand our logistics capabilities in Spain, we are very excited to have launched Relog along with our investment partners, TRS and Migdal. Vega, our local operating partner in this venture, have a proven track record in aggregating and managing logistics portfolios and we look forward to building a best-in-class last-mile and infill logistics portfolio across the key markets in Spain.”
Juan-Carlos Ortega of Vega Partners added: “We are thrilled with this new venture. It is a great honor and at the same time a great responsibility to be backed by institutional international investors of such standing as AEW, TRS and Migdal. We want to thank them for trusting in our vision and in our longtime experience both in managing and investing in different asset classes and situations across Spain. We believe that with their support, we will be able to build a unique logistic platform in Spain. Spain’s fantastic momentum with the potential we see in the logistics sector lead us to think that it will be the first of many other real estate strategies.”