KKR, Round Hill Capital y Pulsar Properties Invierten en el desarrollo de cuatro naves logísticas en España
KKR, Round Hill Capital and Pulsar Properties invest in the development of four logistics warehouses in Spain

Madrid, January 29, 2019: KKR, a leading global investment firm, announces the creation of a platform for investment in logistics assets through a joint venture with Round Hill Capital, a leading firm in investment, development and management of real estate assets , and click Properties. The joint venture, called PULSAR IBERIA LOGISTICS, has formalized the purchase of four logistics development projects in excellent locations in Madrid (3) and Barcelona (1). The joint venture will continue to search for new logistics investments in prime locations in Spain and Portugal, with the aim of expanding its logistics platform in southern Europe.

The four logistics assets have been acquired and will be developed by Pulsar Properties, a Spanish company of recognized prestige in the development of industrial, logistics and intermodal surfaces. The four buildings constitute the first investments of the PULSAR IBERIA LOGISTICS joint venture in Spain, a country that presents very positive indicators for logistics investment, with a high demand and, at the same time, a low supply of logistics products, as well as an economy with a solid track record.

The developments are strategically located in the best locations in the logistics markets of Madrid and Barcelona, ​​in areas with excellent communications, high rental demand, low vacancy rates and a very limited supply of logistics warehouses and building plots.

• Ontígola: it is located to the south of Madrid, in the third logistics ring of the capital, opposite the A4 and close to the A5, R4 and R5 motorways that connect Madrid with the south of Spain. The property, which has a gross area of ​​21,145 m², is characterized by having excellent communication with the city center and the airport.

• Barcelona: located in Parets del Vallès, opposite the AP-7, at the intersection with the C-17 road. These two roads are part of the Mediterranean commercial corridor that connects Barcelona with the south of France and with the rest of Spain through the E15, a road that runs parallel to the Levantine coast. The Parets building, with a gross area of ​​19,907 m2, is characterized by excellent connections to the city centre, the airport and the port.

• Torija: the project consists of two logistics warehouses with high-quality technical specifications, with a surface area of ​​33,091 m² and 20,280 m², respectively. They are located in the third logistics ring of Madrid with very good access to the city center through the A2 and good connection with the A1 motorway, which allows easy links with the north of Spain and the rest of Europe. These properties are also closer to Barcelona, ​​which makes it possible to reach Barcelona without exceeding the maximum permitted driving time.

KKR's investment has been made through its Real Estate Partners Europe fund.

RPE, real estate investment advisor specialized in the Iberian Peninsula, has mediated in the operation and has advised in the creation of the joint venture. Freshfields Bruckhaus Deringer has been the legal adviser of the new investment vehicle.

On the occasion of the announcement, Seb d'Avanzo, director of KKR, commented:
“We are very pleased to have acquired these four developments of high-quality logistics warehouses, which represent the first investments of our joint venture in the Spanish logistics sector, a market that continues to show attractive investment indicators that will drive significant future growth. These are high-quality promotions in excellent locations. KKR's European real estate platform has a long history of operating through strategic alliances and we look forward to working with Pulsar Properties and Round Hill Capital to expand our presence in the logistics sector."

For his part, Jose Mª Alaña Arrinda, founder and CEO of Pulsar Properties, declared:
“We are delighted to have reached this agreement with KKR and Round Hill Capital, which has led to the creation of PULSAR IBERIA LOGISTICS. This joint venture, whose medium-term objective is to acquire 400,000 m² of logistics space, is launched with this initial portfolio made up of four logistics platforms in different locations (Barcelona and Madrid) with a total area of ​​more than 94,000 m².

The agreement reached represents an important strategic alliance in which each of the parties contributes the necessary experience to create one of the largest portfolios of logistics assets in Spain. Pulsar Properties brings its knowledge of the Spanish industrial, logistics and intermodal sector to the identification, analysis, management and development of new investments, which represents a competitive advantage in the Spanish market.”

In relation to the acquisition, Michael Bickford, founder and CEO of Round Hill Capital, has stated:
“Round Hill has been evaluating the logistics market in Spain and southern Europe for several years, having strengthened our expertise and management capacity in Spain. In our joint venture with KKR, we have a significant volume of capital to invest in specific areas of Spain and southern Europe that continue to experience a lack of supply of high-quality logistics assets and in prime locations, with excellent communications and with a significant and growing rental demand.

We are very pleased to have partnered with KKR and Pulsar Properties to acquire these four investments, which constitute our first logistics investment operations in Spain and represent a major boost to our southern European logistics platform strategy and growth plans. Round Hill continues to analyze investment opportunities in logistics assets in Spain and in southern Europe as a whole, continuing with our growth strategy."