PGIM Real Estate, on behalf of its European value-add strategy, and Azora, will jointly fund the joint venture, while Azora will source, underwrite and manage the portfolio.
This joint venture will be the first pure-play investment vehicle focused on last-mile logistics assets in Spain which is one of the largest and most attractive European markets for this asset class.
The joint venture will be funded with €75 million in initial equity commitments, providing a total investment capacity of over €150 million, which it expects to deploy over the next 2-3 years.
The joint venture will seek high quality last-mile logistics opportunities with strong sustainability credentials which it intends to deliver primarily through value add asset management, high quality developments and, selectively, the acquisition of stabilised operating assets.
The investments will be located in the first-ring of Spain’s major cities, with a specific focus on Madrid, Barcelona and Valencia.
Cristina Garcia-Peri, Head of Strategy and Business Development at Azora, commented: “Being able to launch Spain’s first pure-play investment vehicle for last-mile logistics assets, alongside such a high-calibre investment partner as PGIM Real Estate, allows us to further extend our substantial and long standing real estate investment platform. At a time when demand is increasing exponentially, with Spanish e-commerce penetration beginning to catch up with many other European countries, this venture will allow us to harness our expertise in the Spanish market to deliver double digit returns on behalf of our clients.”
Nabil Mabed, Head of France, Spain and Portugal at PGIM Real Estate, added: “The Spanish last mile logistics market is hugely undersupplied, and, following the COVID-19 crisis, the importance of on-shoring and supply chain are becoming increasingly important. We look forward to working alongside Azora to leverage these trends to source and deliver attractive opportunities on behalf of our clients.”