PGIM Real Estate has teamed up with Madrid-based real estate manager Azora to invest over 鈧�150m in last-mile logistics in Spain.
The pair have launched PGIM Real Estate 脷ltima Milla, jointly funded by PGIM Real Estate鈥檚 European value-add strategy and Azora.
The companies said the newly created platform will be funded with 鈧�75m in initial equity commitments, providing a total investment capacity of over 鈧�150m, which it expects to deploy over the next 2-3 years.
The plan is to make investments in major cities like Madrid, Barcelona and Valencia. Azora will source, underwrite and manage the portfolio.
Cristina Garcia-Peri, the head of strategy and business development at Azora, said: 鈥淏eing able to launch Spain鈥檚 first pure-play investment vehicle for last-mile logistics assets, alongside such a high-calibre investment partner as PGIM Real Estate, allows us to further extend our substantial and long-standing real estate investment platform.
鈥淎t a time when demand is increasing exponentially, with Spanish e-commerce penetration beginning to catch up with many other European countries, this venture will allow us to harness our expertise in the Spanish market to deliver double-digit returns on behalf of our clients.鈥�
Nabil Mabed, the head of France, Spain and Portugal at PGIM Real Estate, said: 鈥淭he Spanish last-mile logistics market is hugely undersupplied, and, following the COVID-19 crisis, the importance of on-shoring and supply chain are becoming increasingly important.
鈥淲e look forward to working alongside Azora to leverage these trends to source and deliver attractive opportunities on behalf of our clients.鈥�
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