KKR, Round Hill Capital, and Pulsar Properties have sold their Spanish logistics portfolio joint venture, Pulsar Iberia Logistics, to P3 Logistics Parks for €108.3 million.
The fully leased portfolio comprises ca. 112,000 sqm of big box logistics space, spanning five development schemes, throughout the Greater Madrid Region (82% of lettable area) and Barcelona Region (18% of lettable area).
KKR, Round Hill Capital and Pulsar Properties formed the joint venture in October 2018 to acquire logistics investments across select areas of Spain as part of the expansion of its Southern European Logistics platform. The initial portfolio, consisting of four institutional-quality development schemes, was acquired in a joint venture with RoundHill Capital from developer Pulsar Properties in 2018. The Pulsar joint venture acquired and integrated Fontanar to the portfolio in 2020.
The portfolio is strategically located in the strong and established logistics markets of Madrid and Barcelona, in areas with excellent transport connectivity, deep tenant demand, low vacancy rates and a very constrained supply of available logistics buildings and development land.
Seb d’Avanzo, Managing Director at KKR, commented: “We are delighted P3 Logistics Parks will be the new owner for the Pulsar Iberia Logistics portfolio. Logistics remains a high priority sector for us in Europe, and we have already made further investments through our second European Real Estate fund, KKR Real Estate Partners Europe II. ”
Michael Bickford, founder and CEO of Round Hill Capital, added: “The logistics sector continues to be a key focus area for the Round Hill Capital business. This sale demonstrates the effectiveness of Round Hill Capital’s strategy of using our local market expertise across Europe to source opportunities which generate attractive yield-driven returns.”
Jose Mª Alaña Arrinda, founder and CEO of Pulsar Properties, stated: “We are glad to have taken part in this project together with KKR and Round Hill Capital. The development of the pulsar portfolio has been a complete success.”