Azora raises capital for Spanish last-mile logistics platform

Azora raises capital for Spanish-focused last-mile logistics strategy

Madrid-based European private equity real estate manager Azora has raised initial equity commitments from clients of Crédit Agricole’s wealth management subsidiary, Indosuez Wealth Management, for its Spanish-focused last-mile logistics strategy.

Azora said this additional capital provides the strategy with a total investment capacity of €250 million to deploy into the last-mile logistics sector in Spain.

Indosuez’s clients will channel their investment through MilePro Logística Última Milla, S.A. (MilePro) a newly created vehicle focused on the acquisition of stabilised core-plus operational assets and, selectively, on the development of new assets and which will target net overall returns with an IRR of 8%+.

Azora recently acquired the first asset on behalf of MilePro, with the purchase of a cross-dock logistics asset in Villaverde (Madrid) for €10.7 million. The asset has been acquired through a sale and leaseback and benefits from a long-term lease, scarcity value (limited availability of quality cross-docking facilities) and a prime location (the closest logistics area to Madrid, on the A4 corridor).

MilePro complements and expands Azora’s Spanish last-mile logistics platform and follows the recently announced €150 million joint venture with PGIM Real Estate, which launched in July and which will mainly be targeting value-add and development opportunities. The joint venture marked the first pure-play investment vehicle focused on last-mile logistics assets in Spain, one of the largest and most attractive European markets.

Spain’s last mile logistics sector is marked by strong supply and demand imbalances, with the lack of supply for high quality assets being further exacerbated by COVID-19, which has accelerated the demand for modern logistics space as a result of the rise in e-commerce. Additionally, the fragmentation of the ownership of the market, together with the granularity needed to access the best opportunities, makes it harder to access for large global logistics players lacking unique local knowledge.

Crédit Agricole CIB advised Azora and Indosuez on this transaction and Freshfields Bruckhaus Deringer acted as legal adviser to Azora.

Cristina Garcia-Peri, Head of Strategy and Business Development at Azora, commented: “We have a long-held conviction for high-quality last-mile logistics in Spain. Raising this additional capital gives us a significant opportunity to leverage our unique local knowledge and 17 years of asset management expertise to deploy €250 million into the sector to the benefit of our clients. Moreover, that this capital was raised during the global pandemic demonstrates investors’ continued confidence in both the long-term performance of the logistics sector, and in Azora’s ability to attract institutional capital and create scalable platforms.” 

Antonio Losada, CEO of Indosuez Wealth Management in Spain, commented: “The unstoppable growth of e-commerce in Spain is a reality which is leading to a continued growth in the demand for new logistics formats. It’s a pleasure for Indosuez in Spain to collaborate in this project with Azora and to offer our clients the possibility of having direct exposure to an asset class with such an attractive risk-return profile.”