CBRE completes Spain’s largest logistics sale since 2007

CB Richard Ellis (CBRE) announced that it has advised a confidential purchaser on the acquisition of two Spanish logistics properties of 20,468 sq m and 14,501 sq m for €29 million. This is the largest logistics deal completed in the Spanish market since 2007. The properties, located on the South M-50 Industrial Estate, Leganés, near Madrid, were sold by a Luxemburg-based investment fund.

Basilio González, National Industrial Director, CBRE Spain, said: “After six months of intensive negotiations, CBRE successfully acquired two logistics properties on behalf of the client for a total of €29 million, at a yield of 8%. This transaction exemplifies the increased levels of industrial investment activity in Spain, which look set to continue in 2010.”

The deal has set a new benchmark for yields in the Spanish commercial property market, reflecting rising investor interest in the logistics sector. Current yields of 8% offer a 200 basis points premium over prime offices. In addition, vacancy rates have started to tighten after peaking at just over 15% and rents for prime property appear to have stabilised.

James Markby, Director of Cross-Border Industrial Investment, CBRE EMEA, said: “This deal mirrors a broader trend of rising industrial investment volumes across Europe. Industrial and logistics turnover rose by 52% from the first to the second half of 2009, taking the full-year European total to just over €6.5bn. We expect this momentum to continue in 2010, reflecting a broader recovery in investment appetite across most of Europe.”