M&G Real Estate has acquired the Ontígola logistics platform, located in Madrid's southern corridor, from fund manager Barings for €40.6 million. The acquisition has been agreed on behalf of the M&G European Property fund, which has 4.4 billion and is managed by David Jackson and Simon Ellis.
The platform is fully pre-let for nine years to Iskaypet, a group specializing in pet care. M&G believes the asset will provide a stable income stream for the Fund's investors, as well as increased exposure to the Spanish logistics sector, which is being underpinned by the accelerated growth of e-commerce in the country.
The acquired asset, a new-build and LEED Silver-certified facility, comprises two large-scale warehouses with a total area of 48.700 sqm. The first warehouse will be used for Iskaypet's e-commerce operations, while the second will be used to service the company's network of stores in Spain and Portugal.
Located in the Dehesa de la Plata II industrial park, the platform connects Madrid with the main cities, ports and airports of Spain and Portugal. Other tenants of the logistics park include companies such as DHL and CEVA Logistics.
«This acquisition brings M&G Real Estate's logistics presence in Spain to 330.000 sqm, reflecting the strong fundamentals we see in this sector», says Federico Bros, head of investment and asset management for the Iberian Peninsula at M&G Real Estate.
«The spectacular growth we have seen in the e-commerce segment in Spain in 2020 puts us closer to European levels. This growth will continue to drive solid demand for modern, strategically located logistics platforms, such as Ontígola, and should underpin positive rental growth for our investors», he adds. Hogan Lovells and Knight Frank have acted as legal and commercial advisors on this transaction.