Two of the investors charged with raising the bet on this type of business are LaSalle Investment Management and Engel & Völkers, who signed an agreement for the construction of two logistic warehouses in Villaverde (Madrid). Engel & Völkers’ development division will construct these two last mile centres for 52.6 million euro.
These cutting-edge warehouses will have a total combined area of 40.000 sqm and will be built within a 70.000 sqm terrain. According to the expected deadlines, the keys for the warehouses will be handed in 2023. This will be a forward funding, meaning that, LaSalle will buy the terrains and finance the construction of the real estate project.
The assets will be built within Villaverde, which is located within one of the most important logistic and industrial corridors in Southern Madrid, within a strategic location next to the A-4 motorway.
This is not the first time LaSalle Investment Management invests in logistics in Spain. Acting on behalf fund E-REGI the management company purchased from DIA Logistics a flexible use warehouse fully leased to a supermarket chain in October 2019 for more than 20 million euro.
Apart from logistics, LaSalle also invests in other types of buildings in Spain. One of the management company’s latest operations, which has approximately 71 billion dollars in assets under management, was the purchase last November of a six-floor housing building in Madrid’s Asca financial district.
Logistics also represents one of Engel & Völkers Development’s pillars for growth. The German group’s development division, which has amongst its shareholders Berlin dentists’ pension fund VZB, seeks to make this segment grow, as well as the housing segment.
José Antonio Ruíz-Berdejo y Sigurtà, Engel & Völkers Development Spain’s executive president, explained that the company continues betting on the logistic segment and that it is currently negotiating the acquisition of a further 100.000 sqm for new developments around Madrid. Nevertheless, the company wants to expand its presence with new projects in the metropolitan areas of other large cities, such as Barcelona, Bilbao, Malaga and Valencia.
The executive president explained that, with these new developments, Engel & Völkers Development will play a «decisive role in Villaverde’s revitalisation» as an industrial and logistic hub.
«This key-in-hand project reflects the company’s essence. In terms of the growth strategy within the Spanish market, our philosophy is to create added value for all parts involved in the process, prioritising the project’s sustainability and offering the best rental conditions for our tenants and the most attractive opportunities to our investors», he added.