Singapore sovereign fund GIC is doubling down on its commitment to logistics in Spain. through the company P3 Logistics Parkinstitutional investor It will reach 1 million square meters in warehouses by 2024. “This is an important reality that we hope to achieve at the end of next year,” said Javier Mérida, managing director of the logistics company in Spain, during the presentation of the 2024 forecasts.
P3’s current portfolio currently totals 800,000 square meters in active warehouses. However, a logistics company half a million square meters land portfolio This will allow him to approach the one million star mark. “We have parcels awaiting the urban planning process, and we also have parcels that have made it to the finals. Although it is difficult to give exact deadlines, they should be implemented within the next 3-4 years. We do not engage in projects that require longer time. The maturation process developed by the president of P3 in the Iberian Peninsula “.
P3’s asset portfolio in our country represents approximately 10% of its global portfolio, which reaches 8.3 million square meters in more than 300 warehouses, worth approximately 8.5 billion euros. Although the company operates in 12 countries in the Old Continent, Spain fourth locationIt is behind only Germany, which has more than 3 million meters, the Czech Republic, where the company is based, and practically on par with Poland.
The complex situation of the logistics market
Logistics real estate market is on record Low activity in 2023With trading volume 50% lower than in 2022, depending on the source. The main reason for this is the increase in interest rates and its relationship with real estate returns. This has caused the value of the ships to decrease, and this has not yet been fully transferred to operations. “The market turned around quickly,” the P3 executive admits.
Despite the circumstances, Javier Mérida defends his company’s position: “We have a solid capital structure for the long term. This allows us to move forward in the cycle and be a reliable partner in the development of new projects. Therefore, “look for long-term alliances. “We can do this without exposure to external financing from banks or bonds.”
In 2024 and 2025, P3 logistics will continue to increase its land pool. “We continue to invest in speculative projects where we identify product shortages and look at the investment market,” Mérida explained. Favorite locations for new acquisitions are the largest markets, Madrid and Catalonia, but they also consider secondary locations such as Malaga, Valencia, Bilbao or Vitoria. “Vitoria is one of the markets that interests us because it is a crossroads with France. Malaga is also always an ambition, but it is a complex market because the orography and the general plan do not match. We are looking for projects to reconvert obsolete market assets,” he added.
Company owned by GIC We also expect how the investment market will developto close purchase of an already leased portfolio of assets. “We hope that 2024 will be more attractive, with more operating volumes and more assets available for sale, adapted to the reality of the market,” said the head of P3 in Spain.
Entering a new stock exchange
Just six days ago, P3, which had the corporate form of socimi, entered the stock market Portfolio Exchange, after leaving BME Growth. This new, fully digital market is growing due to cost savings. “Porfolio Stock Exchange gave us the opportunity to have a more flexible structure. In addition to being a completely digital platform, reduces the number of agents and operating costs“, concluded Javier Mérida.