Barings has sold Ontígola Logistics, comprising two warehouse assets near Madrid for €40.6 million on behalf of its value add real estate fund, BREEVA I.
Barings acquired the land for the development in May 2019 and subsequently entered into a development agreement with developer, Logistik Services, for the construction of the project which totals c. 49,000 sq m split across two units.
After the completion of construction, a nine-year lease was signed with Iskaypet, a market leader in pet food stores in Spain, for the entire space.
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The warehouse assets asset is located in Ontígola, a prime area for national logistics near Madrid, connecting the city to Spain’s southern seaports. The A-4 corridor, where Ontígola is situated is favoured for its ability to serve the whole Iberian Peninsula.
“This is the fifth sale we have made on behalf of BREEVA I, as we realise our investments following the close of the fund and the gradual completion of our business plans. The sale adds to the fund’s strong performance to-date, which continues to outperform industry benchmarks. We remain very active in the investment market, with the strong returns generated by this project endorsing our conviction in European logistics, which continues to play an important part of our broader strategy,” said Valeria Falcone, Managing Director & Head of Value Add Investing Europe at Barings.
“Ontigola Logistics is a great example of our ability to create value by using our local knowledge and market leading asset management expertise. The scheme’s strategic location in Madrid’s south logistics corridor, as well as its high-quality design, meant we were able to secure an occupier shortly after the development completed. The speed at which we developed, leased and sold this asset is testament to the skills we have at Barings and our team on the ground,” added Adolfo Favieres, Managing Director & Country Head Real Estate – Iberia.
Pérez-Llorca and Arcadis acted as legal and technical advisors on the sale.