UBS Asset Management acquires EUR58m logistics platform in Zaragoza logistics park
UBS Asset Management (UBS-AM) Real Estate and Private Markets (REPM) has purchased a logistics platform in a leading logistics park in Zaragoza, Spain for a total value of EUR58 million.
The acquisition comprises of four buildings in the Plaza logistics park, one of the largest intermodal hubs in Europe, with a combined size of 72,000 sq m.
The platform, constructed in phases between 2004 and 2016, is situated in the transport corridor linking Madrid and Barcelona via the E90 and AP2 link roads. It also benefits from close proximity to local airport and high-speed rail connections to domestic and international markets. Considered the “Silk Railway Route”, the area connects China to Spain via Western Europe, with the Zaragoza airport, the second busiest cargo airport in Spain, to provide truly global trade access.
The park currently has an 80 per cent occupancy rate and meets all required standards for an institutional logistics park. It will achieve Leadership in Energy and Environmental Design (LEED) sustainability certification within the year.
The site is already used by leading global retailers and wholesalers including Decathlon, Balay (BSH), Inditex and Pikolin as European bases, with a number of tenants taking leases of over 10 years. The arrival of Amazon scheduled for 2022 has also been announced in the last few weeks.
Manuel Hidalgo, Head of Real Estate Iberia at UBS-AM REPM: says: “The acquisition of these assets within the Plaza logistics park is an exciting investment prospect for UBS Asset Management. Not only does the site provide strong logistics fundamentals thanks to transport links and position as a leading European intermodal hub, it also represents an attractive investment in a sector set to grow by up to 5 per cent to 2025. The Spanish logistics sector is also performing strongly, providing returns of c>4 per cent, as well as reaching record investment volumes at EUR1.9 billion in 2019.”
The transaction was advised by a number of firms including Perez Llorca, Knight Frank, Artelia and Olive. The acquisition is the latest in UBS-AM’s successful acquisitions and infrastructure transactions, with recent announcements including the part-financing of a fast fibre-to-home programme in Germany, as well as successfully exited deals in Germany and Italy, providing yields of c4-6 per cent over the four-year leases.