CBRE Investment Management (CBRE IM), on behalf of a fund sponsored by the firm, has puchased two new logistics assets in Madrid, Spain, owned by DWS, with a total gross lettable area of 67,859 sq m.
The first asset, located in Meco, was completed in Q2 2020 and offers 51,969 sq m of gross lettable space with a LEED Silver rating.
The second, in Torrejón, was completed Q4 2019 and provides 15,890 sq m of gross lettable space with a LEED Gold rating.
Both properties are already leased under triple net leases to leading tenants including a German automotive component manufacturer, a national kitchen equipment distributor and an international sustainable energy company. They both also have EPC label A.
Both assets boast excellent locations with easy access to the A-2 and R-2 highways, and good connection with the M-50, Madrid’s outermost ring road. A driving distance of just 30 minutes to Madrid’s city centre means the assets are well positioned to accommodate, amongst others, tenants with a last-mile approach.
The assets have been delivered to high technical and environmental specifications, also benefit from the increased penetration of e-commerce in Spain and the lack of grade A logistics properties in the area.
Antonio Roncero, Head of Transactions for Iberia at CBRE Investment Management, said: “This acquisition was a rare opportunity to secure an income-producing grade A logistics portfolio through an off-market process. The Madrid logistics sector is attractive due to the potential growth of occupier demand versus an acute shortage of supply. Despite current economic headwinds, well located, high-quality and sustainable assets such as these are well placed to take advantage of ongoing rental growth in the logistics sector.”
Manuel Ibañez, Head of Real Estate Iberia at DWS, pointed out: “In 2017 at DWS we bet on the logistics sector and structured a forward purchase agreement with ICC, which culminated in the purchase of the two newly developed warehouses in 2019 and 2020. Following the leasing of both assets, we decided to divest, closing the circle of this deal, which will be profitable for our investors and is part of DWS’s value add strategy. We will continue working to find investment opportunities in key locations and strategic sectors such as logistics, residential and offices, strengthening our presence in Spain”.