Bain Capital and Conren Tramway have €600M to invest in logistics

Bain Capital and Conren Tramway have €600M to invest in logistics

The news was given first-hand to Vida Imobiliária by the heads of the joint venture, which has a fund of more than €600 million to invest in logistics real estate in Portugal and Spain. The focus will be to create a portfolio of class A assets and in compliance with the highest ESG standards, which may involve either the acquisition of existing properties or the development of new greenfield projects.

"In Spain, the joint venture will focus on consolidated and growing logistics hubs at national level, including Madrid, Catalonia, Valencia and the southern region of the country. In Portugal, the focus will be on the Lisbon and Porto hubs," the source said.

The quality of the assets is another focus of this investment, which will be directed towards the creation of class A assets capable of responding to "all kinds of requirements of operators, including big-box, cross-socking, refrigerated storage and last mile". In addition, all assets must meet "the highest ESG standards, including, where appropriate, photovoltaic panels, electric vehicle charging stations, sustainable building materials and innovative facades, roofs and floors", they add.

Strategically, this partnership is seen by Bain Capital as the solution to extend its presence to the Iberian logistics sector. On Conren Tramway's side, the goal is to consolidate its logistics division. Thus, they explain, "to design and replenish assets, the joint venture will apply Conren Tramway's design principles and benefit from Bain Capital's global experience in logistics investment".

Valencia is the first investment target

With this in mind, the joint venture is about to close its first deal, securing the acquisition of a 132,000 sqm site in Lorigilla, near the Spanish city of Valencia, where it will develop a project with a gross leasable area of 92,000 sqm, and which respects the most demanding ESG standards.

Implemented in an area where the available supply is currently very limited, this project is located next to the junction of the A3 and A7 motorways, considered a strategic logistics axis due to the ease of access to the cargo port of Valencia and the ease of connection to the rest of the country.

Bain Capital is the financial partner

Bain Capital acts in this partnership as the main shareholder and financial partner, having "an extensive track record of partnerships with local investors and managers at a global level, to capitalise on investment opportunities in sectors with solid foundations and growth potential". In recent years it has already developed a logistics platform of approximately 400,000 sqm spread across Poland and Italy, focused on greenfield development of highly sought-after micro-locations and sites in close proximity to major logistics corridors.

"We are delighted to launch this new joint venture as we are expanding our logistics services across Southern Europe, namely Spain and Portugal. We have a firm track record in creating logistics platforms in markets with solid foundations, having developed around 400,000 sqm in Italy and Poland in a partnership with two first level partners. Our experience in global investment is complemented by Conren Tramway, which has a firm track record of investment and development in Iberia. And so we look forward to working with them on this project," says Rafael Coste Campos, Managing Director of Bain Capital.

A well-known name in the Spanish real estate investment and development market, Coren Tramway has extensive experience in developing tailor-made real estate products for its clients. The company is already active in the logistics sector through its CT Logistics division, led by José María Gutiérrez and Juan Manuel Esteban.

"After having invested over €1.3 billion and created an organisation of 50 people with offices in Madrid and Barcelona, today we manage all the functions of the real estate value chain, including acquisitions, urban planning, development and asset management and leases, and we stand out for our ability to meet our clients' needs through innovation in product design. We are well placed to expand and diversify your investment programme, driving your values and processes, and the logistics market presents a good opportunity for us to employ our skills as investors, developers and managers with a long-term commitment. To this end, Coren Tramway, which invariably invests in partnership with primary capital from private and public investors, has found the ideal partner in Bain Capital," concludes Paco Hugas, Co-CEO of Coren Tramway.

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