Well located cross-dock warehouse in Madrid purchased for €9.2 million
At the end of December 2019 the Company was pleased to announce that it had acquired an urban located cross-dock logistics warehouse in Coslada, Madrid, for a value of €9.2 million, providing a net initial yield of 5.0%.
The asset is located in Coslada, to the east of Madrid, which the manager believes is one of the best locations for last-mile logistics in Spain due to its 15 kms proximity to the city centre and 1 km distance from Barajas airport. The population size of the Madrid metropolitan area of over 6 million people which this building may serve provides great opportunities for operators in this location.
The highly constrained nature of the Coslada submarket and its strategic importance in connecting the city with the airport and routes through to the east of the country, supports the long term relevance of this asset in the supply chain. The strong growth of e-commerce in Spain reinforces the importance of last-mile logistics hubs such as Coslada. The manager believes this asset carries many of the attractive performance characteristics targeted by the Company.
Urban logistics units are typically smaller in size, reflected in the building size of 6,785 square metres which includes 1,892 square metres of office space. As a cross-dock warehouse, the building has loading bays/doors on both sides of the building, 37 in total. This is ideal for city distribution with lorries bringing in goods at the front end of the building and smaller delivery vans on the opposite side being loaded for onward transmission. With a free height of 10.5 metres it also provides ample space for temporary storage with part of the building being used as cooled storage.
The warehouse has an attractive income profile and is fully leased to DHL Freight Spain S.L.U. on a recently renewed ten year CPI indexed lease. DHL is a strong tenant being one of the largest logistics operators in the world and has operated in this area for 20 years.