Panattoni, Europe's leading logistics-industrial real estate developer, has just published its balance sheet for the first half of 2024, and has released forecasts and objectives for the second half of the year, highlighting the launch of its third project in Portugal. In addition, the company intends to invest more than 590 million euros this year, in order to continue intensifying its presence and expansion in the Iberian Peninsula.
The investment of 590 million planned by Panattoni for this year is distributed among the three main projects in Spain and Portugal corresponding to Panattoni Park Miranda de Ebro (133,000sq. m GLA), Panattoni Park Porto Valongo (two buildings of 27,000 sq. m and 47,000sq. m ) , and its first Data Center in Cerdanyola del Vallés(Barcelona) on a 60,000sq. m plot.
In terms of logistics activity during the first quarter of 2024, the Spanish real estate market maintained the levels of leasing and transactions of 2023, but a slowdown in decision-making was observed due to different economic factors. On one hand, prime rents increased in Barcelona (€8.50/sq. m/month), Madrid (€6.40/sq. m/month) and Valencia (€5.50/sq. m/month). On the other hand, leased logistics space decreased in Barcelona and Valencia, but increased in the central area, and is expected to continue to grow in areas where supply is scarce.
Investment grew by 9%, concentrating in Madrid, Barcelona, and Valencia. Investors focus on value-add products, and yields have reached record highs, with potential compression if the ECB lowers, even more, rates. Demand for S&LB transactions remains strong, while core assets face greater challenges. Despite economic difficulties, the logistics sector is expected to continue presenting growth opportunities and active demand in 2024, ranking as the favorite sector for 34% of investors, followed by residential (28%) and office (17%).
Spain can become also an international Data Centre hub thanks to its strategic geographical position, the largest and most secure fiber data network in Europe, and fast, economical, and sustainable access to energy. Additionally, the availability of land further supports this potential. Consequently, Panattoni has recently acquired a 60,000 sq. m plot in Cerdanyola del Vallès (Barcelona) to develop the largest data centre in the region, with an estimated investment of 300 million euros. The first phase, covering 42,000 sq. m, is expected to begin at the end of this year. This technology campus will feature an installed power of 42 MWs and will be strategically located just 20 km from Barcelona, ensuring excellent connectivity. Quark will carry out the engineering and design. This project will significantly contribute to the digital infrastructure in Southern Europe and North Africa. The geographical diversification of the developments is one of the strategies that Panattoni has been pursuing in the Iberian Peninsula since its inception 4 years ago. In this regard, it currently has 14 completed projects in 12 Spanish provinces, totaling 534,000 sq.m of GLA (gross leasable area).
Also in this last period, Panattoni continues its expansion in the Portuguese market with its third project at the north of Lisbon. The project will consist of a 34,000 sq. m GLA, in addition to the 74,000 sq. m under construction in "Panattoni Park Porto Valongo" and the recently announced "Panattoni Park Lisbon-City" which will have a surface area of 85,000 sq. m whose works will start in 2025.
In addition, Panattoni has 263,000 sqm of buildable land available for BTS projects located in Valencia, Vitoria, Murcia, Torija, Illescas, Madrid, Miranda de Ebro, Lisbon and Barcelona, which they plan to develop, as they are able to close agreements with end users.
Regarding immediately available logistics spaces, Panattoni currently has available spaces in its logistics parks in Vitoria-Gasteiz, Zaragoza, La Bisbal del Penedés (Tarragona), Illescas, and Porto.
Panattoni's commitment to quality and sustainability is evidenced by the implementation of best practices in sustainable construction. All projects are certified, by default, at BREEAM 'Very Good' or 'Excellent' level. Notable examples include Panattoni Park Illescas, Panattoni Park Miranda de Ebro and Panattoni Park Lisbon-City. The company combines a global presence with deep local knowledge, using an international network that brings resources and expertise tailored to the specific needs of each market. Panattoni's local multidisciplinary teams offer innovative and customized solutions, ensuring that each project meets the unique specifications of its clients. In addition, Panattoni's financial strength allows it to undertake large-scale projects, meeting deadlines and budgets without geographical restrictions, and expanding significantly in 16 provinces of the Iberian Peninsula in just four years.
"During the past year, Panattoni has continued with its roadmap within the objectives of growth in the Iberian Peninsula. The consolidation of projects, together with the development of new markets, both in Spain and Portugal, reinforce our positioning as a reference in the sector in terms of development capacity, innovation and commitment to our customers. Our capacity for diversification and resilience, together with our commitment to our communities, are the keys to our continued commitment to strategic locations and next-generation buildings," said Gustavo Cardozo, Managing Director and Partner of Panattoni Iberia.
