Bain Capital and Conren Tramway to invest €600m in Iberian logistics assets

Bain Capital and Conren Tramway to invest €600m in Iberian logistics assets

Private investment firm Bain Capital and Spanish developer Conren Tramway (CT) have launched a joint venture to invest more than €600 million in the acquisition and development of logistics assets in Spain and Portugal over the next five years.

In Spain, the joint venture will prioritize investment in consolidated and growing logistics centers in Madrid, Catalonia, Valencia and the south of the country. In Portugal, the focus will be on the logistics hubs of Lisbon and Porto.

The joint venture will focus on grade A logistics projects that meet the full range of needs of logistics operators, including big box assets, cross-docking, refrigerated warehouses and last-mile logistics. 

To design and reposition the assets, the joint venture will apply CT Design Principles and benefit from Bain Capital’s global experience in logistics investments. 

In addition, the new vehicle will focus on promoting assets that meet the highest ESG standards, incorporating, where appropriate, photovoltaic panels, electric vehicle chargers, sustainable construction materials, and innovative façades, roofs, and pavements.

The joint venture has agreed to purchase a plot in Loriguilla (Valencia) with a total leasable area of ​​92,000 m2. The asset will be developed according to the highest ESG standards.

The Loriguilla project is located near the crossroads of the A3 and A7 motorways, a strategic logistics area due to its easy access to the Valencia cargo port and its good connectivity with the rest of Spain. Space available in the area is currently limited.

The logistics market in the Iberian Peninsula is attracting more and more international attention, which has led to a four-fold increase in the volume of annual investment in Spain since 2016. The historically low levels of available space are expected to continue driving the growth of short term rentals. In 2022, Madrid, Catalonia and Valencia registered record levels of logistics contracting, with an increase in rents and a reduction in vacancy rates in the most consolidated hubs .

Rafael Coste Campos, Managing Director of Bain Capital, said: “We are delighted to launch this new JV as we expand our logistics services throughout southern Europe, particularly Spain and Portugal. We have a solid track record of establishing logistics platforms in markets with strong foundations, having developed close to 400,000 m2 in Italy and Poland together with two top-tier JV partners. Our global investment experience is complemented by CT, which has a strong investment and development track record in the Iberian Peninsula. We are looking forward to working with them on this project.”

Paco Hugas, co-CEO of CT, explained:”After having invested more than 1,300 million euros and having created an organization of 50 people with offices in Madrid and Barcelona, ​​CT integrates all the functions of the value chain, including purchasing , urban planning, promotion, management and leasing of assets, distinguished by its ability to adapt to the needs of users through innovation in product design. CT is well positioned to expand and diversify its investment program by leveraging its values ​​and processes, and the logistics market offers a good opportunity to deploy our capabilities as a long-term committed investor, developer and manager. To do this, the company, which always invests jointly with primary capital from private and institutional investors.”

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