The 56,000-square metre property is located on the A4 corridor connecting Madrid with southern Spain. It is currently fully let to Ceva, a logistics and freight management business, which recently renewed its lease.
According to Barings, the company is hoping to capitalise on a heavily under-supplied area, with GDP growth and rising employment rates, plus a trend of increasing internet sales.
The purchase continues Barings’s expansion in Spain, following the acquisition of an office space in 2015 and a retail space in 2016, both in Madrid.
Adolfo Favieres, country head of Spain at Barings Real Estate Advisers, said: “We believe in the attractive supply and demand dynamics in the Madrid logistics market which is underpinned by an improving economy.”
“The continued growth in market share from online sales is likely to significantly impact the demand for good quality and well located logistics units such as this core investment.”
Gunther Deutsch, head of transactions Europe at Barings Real Estate Advisers, said: “This transaction, our second in Spain within just a few months, highlights our strong appetite for investments in the region. Our main focus is on the retail, logistics and office sectors on a risk spectrum from core to value add, as well as being able to forward fund developments.”