KKR, Round Hill Capital and Pulsar Properties Acquire Four Logistics Warehouse Developments in Spain

KKR, a leading global investment firm, announces an investment into southern European logistics real estate through a new joint venture with Round Hill Capital, a leading real estate investment, development and asset management firm, and Pulsar Properties. The joint venture, PULSAR IBERIA LOGISITCS, is forward purchasing four well-located purpose-built Spanish logistics warehouse developments in Madrid (3) and Barcelona (1). The joint venture continues to seek further logistics investments across select areas of Spain and southern Europe as part of the expansion of its Southern European Logistics platform.

The four logistics developments are being acquired from and developed by Pulsar Properties, a renowned logistics developer in Spain of industrial, logistics and intermodal infrastructures. These four logistics developments are the first investments by the joint venture in Spain, a country which exhibits positive investment fundamentals, increasingly favourable demand/supply dynamics and robust economic performance.

These four institutional-quality development schemes are strategically located in the strong and established logistics markets of Madrid and Barcelona, in areas with excellent transport connectivity, deep tenant demand, low vacancy rates and a very constrained supply of available logistics buildings and development land.

  • Ontigola, Madrid: located in Ontigola, south of Madrid on the third logistics ring, facing the A4 and near to the A5, R4 and R5 motorways that link Madrid to the South of Spain. The site benefits from good city centre and airport connectivity and he freehold logistics warehouse has a gross internal floor area of 21,145 sqm.
  • Barcelona: located in Parets del Vallès, facing the AP-7 in the intersection with C-17 road, both forming part of the Mediterranean trade corridor linking northern Barcelona to the South of France, south to the rest of Spain via the E15 along the Eastern coast. The site benefits from good city centre and airport and port connectivity. The freehold logistics warehouse asset has a gross internal floor area of 19,907 sqm.
  • Torija, Madrid: two freehold high specification logistics warehouse developments of 33,091 sqm and 20,280 sqm respectively, located on the third logistics ring of Madrid with good access to the city centre and the A2 motorway, and good connectivity to the A1 motorway, ensuring good links to the North of Spain and the rest of Europe. The site is also closer to Barcelona, which is accessible well within the maximum drive time.

KKR’s investment was made through its Real Estate Partners Europe fund.

RPE, the Iberian specialist real estate investment advisor, brokered the transaction and advised on the formation of the joint venture. Freshfields Bruckhaus Deringer provided the legal and structuring advice for the new vehicle.

Seb d’Avanzo, Director at KKR, commented:

“We are delighted to have acquired these four high-quality Spanish logistics warehouse developments, our joint venture’s first investments in Spain’s logistics sector, a market which is continuing to exhibit attractive investment fundamentals and strong future growth drivers. These are high-quality developments in excellent locations. KKR’s European real estate platform has an impressive track record in executing partnership deals, and we look forward to working closely with Pulsar Properties and Round Hill Capital to expand our footprint in logistics.”

Jose Mª Alaña Arrinda, founder and CEO of Pulsar Properties, said:

“We are pleased to have concluded a joint venture agreement with KKR and Round Hill Capital, which has resulted in the creation of the PULSAR IBERIA LOGISTICS vehicle. This vehicle, whose medium-term goal is to acquire 400,000 sqm of logistics space benefits from having a seed portfolio of four logistics platforms in different locations (Barcelona and Madrid) with a total area of more than 94,000 sqm.

The agreement reached represents an important strategic alliance, in which each party contributes the necessary experience in order to create one of the largest logistics portfolios in Spain. Pulsar Properties provides its knowledge of the industrial, logistics and intermodal sector in Spain, when locating, analysing, managing and developing new investments, bringing a competitive advantage to operating in the Spanish market.”

Commenting on the acquisition, Michael Bickford, founder and CEO of Round Hill Capital, said:

“Round Hill has been evaluating the Spanish and southern European logistics real estate markets for several years and we have been strengthening our existing management expertise and capabilities in Spain. In joint venture with KKR, we have significant dedicated capital to deploy in select areas of Spain and southern Europe, which continue to see long term supply constraints of well-located high-quality logistics assets with excellent transport connectivity coupled with deep and increasing tenant demand.

We are pleased to partner with KKR and Pulsar Properties to acquire these four investments, our first logistics warehouse transactions in Spain, which significantly enhance our existing Southern European Logistics platform strategy and growth plans. Round Hill is continuing to look to make further investments in logistics property in Spain, and across wider southern Europe in line with our existing growth strategy.”

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, growth equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About Pulsar Properties

Pulsar Properties and its business group form a group of companies highly specialised in land management, promotion, development, and refurbishment of industrial, logistics and intermodal platforms in Spain.

Our extensive track record surpasses more than 25 years in the logistics and intermodal sector and has resulted in our company being considered by the sector as one of the main players in the development of these types of assets in Spain.

Further information of Pulsar Properties is available at: www.pulsarproperties.es

About Round Hill Capital

Round Hill Capital is a leading global specialist real estate investment, development and asset management firm. Round Hill Capital has a long and proven reputation for successfully identifying and acquiring high quality real estate investments.

Round Hill Capital is a highly focused investor and is experienced in establishing and running first class operating companies, having invested more than €6.5 billion of capital in real estate assets since its inception in 2002.

Round Hill has a successful track record of investing in and operating residential and student accommodation assets across Europe. The Group has acquired, built and managed over 110,000 residential units and student housing beds in recent years and currently manages circa 65,000 residential units and student housing beds in over eight European countries. Round Hill’s approach incorporates multiple strategies, such as acquiring existing assets, developing new purpose-built assets, forward-purchasing assets and repositioning assets.

Round Hill Capital has an established track record of generating high risk adjusted returns and invests in and asset manages real estate with some of the world’s leading institutions and private investors.

Further information on Round Hill Capital is available at: www.roundhillcapital.com.

For further information, please contact:

PR Advisers to Round Hill Capital

Maitland/AMO / Grupo Albión

James Benjamin / José M. García Villardefrancos

Tel: +44 (0) 7747 113 930 / +34 91 531 23 88

james.benjamin@maitland.co.uk / jgarcia@grupoalbion.net

PR Adviser to KKR

Finsbury

Shiv Talwar/Alastair Elwen

Tel: (0) 20 7251 3801

Shiv.talwar@finsbury.com

PR Adviser to Pulsar Properties

Tel: +34 91 616 684 908

info@pulsaproperties.es