'Unstoppable' growth of e-commerce in Spain targeted in 250 mln euro deal
European private equity real estate manager Azora has announced the expansion of its Spanish-focused last-mile logistics strategy with a focus on Madrid, Barcelona and Valencia, having raised initial equity commitments of up to 250 million euros from Indosuez Wealth Management.
Indosuez’s clients will channel their investment through MilePro Logística Última Milla, S.A. a newly created vehicle focused on the acquisition of stabilised coreplus operational assets and, selectively, on the development of new assets and which will target net overall returns with an IRR of 8%+.
Azora has a strong pipeline of opportunities and recently acquired the first asset on
behalf of MilePro, with the purchase of a cross-dock logistics asset in Villaverde (Madrid) for 10.7 million euros. The asset has been acquired through a sale and leaseback and benefits from a long-term lease, scarcity value (limited availability of quality cross-docking facilities) and a prime location (the closest logistics area to Madrid, on the A4 corridor).
MilePro complements and expands Azora’s Spanish last-mile logistics platform and
follows the recently announced 150 million euros joint venture with PGIM Real Estate, which launched in July and which will mainly be targeting value-add and development opportunities.
The joint venture marked the first pure-play investment vehicle focused on last-mile logistics assets in Spain, one of the largest and most attractive European markets.
Spain’s last mile logistics sector is marked by strong supply and demand imbalances,
with the lack of supply for high quality assets being further exacerbated by COVID-19, which has accelerated the demand for modern logistics space as a result of the rise in ecommerce.
Crédit Agricole CIB advised Azora and Indosuez on this transaction and Freshfields
Bruckhaus Deringer acted as legal adviser to Azora.
Cristina Garcia-Peri, Head of Strategy and Business Development at Azora,
commented: “We have a long-held conviction for high-quality last-mile logistics in Spain. Raising this additional capital gives us a significant opportunity to leverage our unique local knowledge and 17 years of asset management expertise to deploy 250 million euros into the sector to the benefit of our clients. Moreover, that this capital was raised during the global pandemic demonstrates investors’ continued confidence in both the longterm performance of the logistics sector, and in Azora’s ability to attract institutional capital and create scalable platforms.”
Antonio Losada, CEO of Indosuez Wealth Management in Spain, commented: “The
unstoppable growth of e-commerce in Spain is a reality which is leading to a continued growth in the demand for new logistics formats. It’s a pleasure for Indosuez in Spain to collaborate in this project with Azora and to offer our clients the possibility of having direct exposure to an asset class with such an attractive risk-return profile.”