Logistics is moving centre stage. Analysts from the Wisconsin School of Business, at MIPIM to survey the state-of-mind and state-of-business of delegates, suggested there is increased interest in moving capital away from core traditional investment assets towards new and secondary sectors, with infrastructure and logistics the big new kids on the block.
This fresh look at logistics was reflected at MIPIM 2016, where two conference sessions focused on the industry: “The importance of logistics infrastructure for a growing region”, followed by a case-study approach that pointed at the region of Barcelona-Catalonia as an example of “Efficient logistics for a competitive Europe”.
One of the key logistics stories covered by MIPIM News was about logistics specialist Logicor purchasing a portfolio of 12 assets from logistics real estate investment vehicle Goodman European Partnership (GEP).
The 496,000 sq m portfolio comprises six assets in Germany, three in Spain and three in Benelux. Existing tenants across the portfolio include third party logistics service providers, manufacturers and engineering firms.
“This high quality portfolio is a continuation of our growth strategy,” Logicor Chief Executive and President Mo Barzegar said. “The result is a stronger Logicor position in several key European markets, as well as a deeper relationship with new and existing customers.”
Logicor’s German platform now totals 2 million sq m; and the company has 1 million sq m in Spain; and 500,000 sq m in Benelux.
Another story on the growth of the logistics industry focussed on P3 Logistics Parks, which has 220,000 sq m of warehouse space under construction in four countries across Europe – about twice its development total in 2015.
The company was at MIPIM to help fuel its portfolio growth. “We have a large land bank but we would like to buy in Western Europe,’ said P3’s Chief Executive Ian Worboys. He added that he was also in Cannes to meet banks because P3 is planning to refinance.
According to Worboys, rents for built-to-suit buildings are bottoming out. There is a shortage of space and rents are being pushed up. This is why P3 is building speculatively at Horni Pocernice near Prague in the Czech Republic; and at Gottfrieding in Germany.
In Germany, P3 has bought a site for a 50,000 sq m warehouse situated about a six-minute drive from the BMW factory.