Clarion Partners Europe has acquired a 37,160-square-meter (399,987-square-foot) newly built, institutional-grade warehouse near Illescas Yeles, south of Madrid.
The acquisition continues Clarion Europe’s strong 2020 during which it has collected all rent due, including the period since the Europe-wide lockdown commenced in March. In addition, and reflecting the strength of its occupier markets, it has recently signed new lease agreements/renewals on more than 150,000 square meters (1.6 million square feet) with a further 71,000 square meters (764,000 square feet) due to sign imminently.
The build-to-suit Madrid property, which was completed earlier this year, is leased to Mediapost Spain, part of La Poste group, one of the largest postal and courier companies in Europe, on a seven-year double–net lease. Also a 153-space parking area is on the property.
The Illescas market is strategically located 40 kilometers (25 miles) south of Madrid center, offering excellent connectivity via the A-42 and A-4 motorways, which are accessible within five and 15 minutes, respectively, while Madrid city center can be reached within 35 minutes.
The Madrid logistics market has continued to see strong take up, underpinned by accelerating ecommerce trends. About 260,000 square meters (2.8 million square feet) of space was leased during the first half of 2020, representing a 56 percent increase versus the same period last year.
Clarion Partners Europe commented, “This is an institutional warehouse asset in one of Spain’s major logistics hubs, let to a strong covenant in a market which is expected to continue to grow due to the rapid increase in ecommerce penetration caused by the COVID-19 pandemic.
“Despite ongoing economic volatility, our portfolio has continued to demonstrate its strong income and capital value characteristics. The importance of our assets to our diverse tenant base has been demonstrated by our rent collection figures and recent letting successes, and we believe we are well placed from a sectoral and geographical perspective as more businesses seek to futureproof their operations in response to changing consumer behavior.”
Source: IREI