Singapore’s sovereign fund GIC is expanding its commitment to Spain’s logistics sector through the company P3 Logistics Park, an institutional investor active in the field. The plan targets reaching one million square meters of warehouse space by 2024. Javier Mérida, managing director of P3 Logistics in Spain, emphasized the milestone during the presentation of 2024 forecasts, noting it as a key objective for the near term.
P3 currently manages about 800,000 square meters of active warehousing. A half‑million square meter land portfolio in logistics will push the total toward the one‑million mark. Mérida explained that parcels remain in the planning pipeline and others have reached the finalist stage. While exact timelines are hard to pin down, he anticipated project implementation within the next three to four years, stressing that P3 does not pursue projects with long maturation periods. The strategy reflects the vision championed by the P3 president for the Iberian Peninsula.
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P3’s portfolio in Spain represents roughly 10% of its global footprint, which spans about 8.3 million square meters across more than 300 warehouses, with an overall value near 8.5 billion euros. Although the firm operates in twelve European countries, Spain ranks fourth in scale behind Germany, the Czech Republic, and close to Poland, reflecting a broad, diversified presence on the continent.
The complex situation of the logistics market
The logistics real estate market faced record‑low activity in 2023, with trading volume down about 50% from 2022 according to multiple sources. Rising interest rates and the impact on real estate yields contributed to the reevaluation of vessel values, with the effects not yet fully reflected in ongoing operations. The market began to recover, according to Mérida, though the pace varies by segment.
Despite these headwinds, Mérida defended P3’s stance, highlighting a solid capital structure built for the long term. This position supports ongoing development and the pursuit of long‑term partnerships, aiming to operate with limited reliance on external financing from banks or bonds.
Javier Mérida serves as the president for P3 in Spain, a role tied to the broader Iberian strategy of the group.
Looking ahead to 2024 and 2025, P3 plans to expand its land pool further, continuing speculative development in markets where supply gaps are evident and investment opportunities exist. Madrid and Catalonia are primary targets for new acquisitions, with secondary markets such as Malaga, Valencia, Bilbao, and Vitoria also under consideration. Vitoria stands out due to its strategic position as a border crossing with France, while Malaga presents challenges related to topography and urban planning that affect reconversion of older assets. The aim remains to convert underutilized or obsolete properties into viable logistics assets as market conditions allow.
The group, backed by GIC, is projected to observe how the investment landscape evolves, including the potential purchase of an already leased portfolio of assets. The outlook for 2024 is to see higher operating volumes and more assets available for sale that fit current market realities, according to Mérida.
Entering a new stock exchange
Recently, P3, formerly structured as a socimi, joined a new fully digital platform, Portfolio Exchange, after stepping away from BME Growth. The move to Portfolio Exchange is driven by cost efficiencies and the reduced need for intermediaries, as well as a more streamlined operating model. Mérida noted that the digital platform provides greater flexibility in corporate structure while cutting operating costs and the number of agents involved in transactions, aligning with strategic goals for scale and efficiency.