Pan-European real estate investment manager Tristan Capital Partners has formed a joint venture with Spanish real estate specialist Kefren Capital Real Estate (Kefren) to develop a logistics platform in Spain.
Through Tristan’s CCP 5 Long-Life core-plus Fund, Tristan and Kefren are targeting a platform of €200 million in established logistics locations across the country, including Madrid, Barcelona, Valencia and Bilbao.
The JV acquired its first three assets in Q1 2020, with a lettable area of c.43,000 sqm of which 93% is let to a number of tenants serving corporate contracts for the storage and distribution of goods.
The assets are located in Azuqueca de Henares, an established logistics submarket within Madrid’s third ring in the A-2 corridor. In addition to acting as co-investor, Madrid-based Kefren will act as local operating partner and asset manager.
“Tristan has a strong track record across multiple European markets of assembling logistics platforms that are in heavy demand and short supply. We look forward to working with Kefren in this strategy and drawing on their strong local network and expertise,” said Nikolay Velev, Executive Director at Tristan Capital Partners.
Tristan and Kefren are actively seeking add-on opportunities to grow the platform targeting existing assets, sale-and-leaseback transactions and forward purchases for buildings of institutional quality from an occupational perspective. The joint venture is targeting individual transactions of minimum €5 million lot size.
“The e-commerce market is expanding rapidly in Spain, fuelling demand for all types of warehouse space. We see significant potential to build a portfolio of smaller and medium assets in established industrial locations that meet the highest institutional standards,” added Pelayo Primo de Rivera Oriol, Executive Partner at Kefren Capital Real Estate.