Barings invests in Spanish retail warehouse
Barings Real Estate Advisers, part of Barings, has completed the off-market forward purchase of a 10,900 sq m fully-let retail warehouse and petrol station in Spain for EUR17.6 million from López-Real.
Situated in a prime retail destination in Majadahonda on the north-western outskirts of Madrid, the warehouse is in close proximity to the most successful shopping centre in the region. The warehouse is pre-let to Conforama, the European retail leader in furniture and household goods, on a 10-year lease.
Easily accessible from the M50 ring road, the warehouse also benefits from basement storage of 4,070 sq m, as well as underground parking for 55 cars and external parking for 159 cars.
The acquisition follows a number made by Barings in Spain this year, which have included the purchase of a 56,000 sq m unit in Madrid in April 2017 for EUR35 million, a prime high street retail unit of over 1,600 sq m in July for EUR21.6m and most recently a 29,000 sq m retail warehouse in Zaragoza for EUR17.6m. Barings was advised by Resource Capital Partners, Hogan Lovells and Arcadis.
Adolfo Favieres, Country Head of Spain at Barings Real Estate Advisers, says: “This high quality development in a strategic location presents a compelling investment opportunity. The supply and demand dynamics remain attractive, supported by the improving economy, with a particular need for good quality stock that fits modern retailer requirements.”
Gunther Deutsch, Managing Director and Head of Investment Transactions Europe at Barings Real Estate Advisers, says: “This transaction demonstrates that our appetite for investments in this region of Spain remains strong. We remain committed to investments in the retail, logistics and office sectors on a risk spectrum from core to value add, in Spain and across Europe more widely.”