Three major real estate funds, Ares, Patrizia and BentallGreenOak have listed significant property portfolios in Spain for sale. They are trying to capitalize on the high interest in logistics facilities in the market due to strong demand from operators. Together these transactions can exceed 330 million euros.
Recently, the US funds Ares and BentallGreenOak were looking for buyers. Patrizia had already brought part of her portfolio onto the market as part of her further development Five days in May.
In case of ares, has commissioned the real estate consultancy CBRE with a sales process. According to industry sources, the company has decided to divest its entire portfolio in Spain, which is primarily based in Madrid. The US fund declined comment and is being conducted in the country Alonso Torre de Silvaseeks around 120 million for these assets.
Another new process on the market is that of BentallGreenOak, also commissioned by CBRE. In this case, the fund, which has been one of the most active in logistics real estate in recent years, aims to sell around a third of its portfolio in Spain. Specifically, five assets in the Basque Country and Catalonia will be put up for sale, which real estate market sources say could approach a value of 100 million.
The area sold by BentallGreenOak reaches 60,000 square meters. These are ships owned by investors such as family offices in recent years with some of the five funds with which this manager operates in Spain. This company -performed in the country Javier Zarrabeitia– considers these assets to be mature after more than three years in its portfolio and therefore sees an opportunity to bring them to market at a time when prices for this type of property are reaching record highs.
For his part Patricia, one of the most active investment funds in Spain in recent years, is selling part of its extensive logistics portfolio in the country. The real estate manager has put two properties on the market in Madrid and Toledo for a sum of around 110 million euros, according to this newspaper.
The ships to be transferred are located in Ontígola (Toledo), a relevant logistics point due to its proximity to Madrid, and on the Los Gavilanes platform in Getafe. The one in Ontígola has DHL and Logisfashion as tenants, a logistics service provider that provides services to fashion companies.
This German company that has Edward Rhodes as General Manager in Spain, he is one of the major European real estate funds. In 2020, Patrizia completed the sale to the German fund Real IS of two logistics properties with a total area of 110,000 square meters, located in the greater Madrid area and rented to Amazon, Leche Pascual or GM Food, among others, for 150 million euros. Also that year, the Amazon warehouse in Alcalá de Henares was transferred to another fund of the German manager.
With numerous transactions, logistics has been one of the star segments in the real estate sector in recent years. This high level of interest in ships accelerated post-pandemic due to high demand from logistics and e-commerce companies (with the clear example of Amazon at the forefront). As a result, the prices paid by investors for this type of property have reached peaks and reached a yield (Profitability) in extreme cases under 4%, at a level at which only offices moved a few years ago.
Therefore, the experts assume that if Patrizia, Ares and GreenOak could buy (as an assumption) at 6%, yield a few years ago, now they can place the product at an average of 4.5%, in addition, as the owner, they have been able to collect rental income during this time.
This heavy investment in ships will reach 1,100 million in this first half of the year, according to forecasts by consulting firm JLL. That’s down 29% year over year, worse only because 2021 saw the Montepino macro operation acquired by Bankinter for nearly $900 million.
Patricia. Patrizia has been very active in logistics in recent years in the country, both in buying and selling. Among the largest acquisitions is that of 11 warehouses in Spain by BentallGreenOak in 2019. In the Iberian market, this German company controls investments worth around 2,000 million euros. Around 20% (just over 400 million) correspond to logistics facilities. Although most of its investments, around 50%, currently correspond to rental housing. 15% are concentrated in offices and the rest in other types of real estate such as shops and hotels.
BentallGreenOak. Bentall Kennedy and GreenOak Real Estate merged in 2018 creating one of the world’s largest real estate managers. This New York firm controls $78,500 million in assets, with data from the first quarter. In Spain, it is also investing in offices and looking for housing rental opportunities.
ares The Los Angeles manager has a portfolio worth $45.9 billion. In Spain it has recently distinguished itself for its commitment to rental housing through agreements with Metrovacesa and Aedas.