Bain Capital And Conren Tramway Partner to Invest Over €600 Million In Iberian Logistics

  • Joint venture (JV) on track to acquire land in Valencia with 92,000 sqm of GLA
  • JV will acquire and develop warehouses in Iberia to the highest ESG standards
  • Partnership consolidates the launch of Conren Tramway’s logistics division
  • Bain Capital to expand its existing c.400,000 sqm logistics portfolio to include Spain

MADRID and LONDON – June 26, 2023 – Bain Capital, a leading private investment firm and Conren Tramway (CT), a leading Spanish real estate investment and development firm, have announced the launch of a JV to co-invest over €600 million into the acquisition and development of logistics in Spain and Portugal over the next five years.

In Spain, the JV will target consolidated and growing logistics hubs nationwide including Madrid, Catalonia, Valencia and Southern Spain. In Portugal, the focus will be on the hubs in Lisbon and Porto.

The JV will focus on delivering grade A logistics to suit the whole range of operator demand, including big box, cross-docking, cold storage and last mile. To design and reposition the assets, the JV will apply CT’s Design Principles and benefit from Bain Capital’s global expertise in logistics investment. The CT team has extensive experience working with clients to tailor the design, construction, functionality, and sustainability of assets to their business needs.

Additionally, the partnership is focused on delivering assets that meet the highest ESG standards including, where appropriate, photovoltaic panels, EV chargers, sustainable construction materials and innovative façades, roofing, and pavements.

CT has an extensive track record of investment and development in the Spanish market, with dedicated teams covering each phase of the investment cycle. Its logistics division, CT Logistics, is led by José María Gutiérrez and Juan Manuel Esteban, with a combined 40 years’ experience investing in, developing, and managing logistics warehouses. Prior to joining CT, they helped create the largest portfolio of logistics assets in Spain, totalling 2.8 million sqm and owned by Merlin Properties, a major real estate investor. Luke Treasure and Gerard Cuevas, with backgrounds at Hines and Goodman, respectively, will support the team in design, construction and sustainability.

As the majority shareholder and financial partner, Bain Capital has a long track record of partnering with local investors and managers globally to capitalise on investment opportunities in sectors with strong fundamentals and growth potential. It has developed c.400,000 sqm of logistics platforms in Poland and Italy, where it focuses on ground-up development in sought after micro-locations, and locations in close proximity to the main logistics corridors, respectively.

JV kicks off with the acquisition of a 92,000 sqm GLA plot in Valencia

The JV  has secured a plot in Loriguilla (Valencia) with total GLA of 92,000 sqm. The asset will be developed to the highest ESG standards.

The Loriguilla project is located near the junction of the A3 and A7 motorways, a strategic logistics area due to its easy access to Valencia’s cargo port and good connectivity with the rest of Spain. Available space in the area is currently limited.

A dynamic market with strong fundamentals

The Iberian logistics market is attracting increasing international attention, leading to a four-fold increase in annual investment volumes in Spain since 2016. The historically low levels of available space are expected to continue to drive rental growth in the short term. In 2022, Madrid, Catalonia, and Valencia had record levels of logistics leases, with rising rents and falling vacancy rates at the most consolidated hubs.

Rafael Coste Campos, Managing Director at Bain Capital comments, “We are pleased to launch this new JV as we expand our logistics services across Southern Europe, in particular Spain and Portugal. We have a solid track record of establishing logistics platforms in markets with strong fundamentals, controlling c.400,000 sqm in Europe alongside two best-in-class JV partners. Our global investment expertise is complimented by CT who have a strong track record of investment and development in Iberia. We look forward to working with them on this project.”

As Paco Hugas, co-CEO of CT, explains, “After having invested more than €1.3 billion and assembled an organisation of 50 people with offices in Madrid and Barcelona, CT manages all functions of the value chain, including acquisitions, urban planning, development and asset and lease management, distinguishing itself for its ability to accommodate user needs through innovation in product design. CT is well positioned to expand and diversify its investment programme leveraging its values and processes, and the logistics market presents a good opportunity to deploy our skills as an investor, developer, and manager with a long-term commitment. To that end, the firm, which invariably invests jointly with primary capital from private and institutional investors, has found the ideal partner in Bain Capital”.

José María Gutiérrez, Managing Director of CT Logistics, says, “Our team’s four decades of experience in the logistics market has shown us how important it is for our clients to have real estate partners who understand their needs and know how to reflect those needs in the design of next generation logistics projects, while working alongside them as they grow their operations. CT and Bain Capital are ideally poised to perform this role over time” .


About Conren Tramway

Conren Tramway (CT) is a Spanish real estate development and investment firm with a portfolio of assets including office buildings, mixed-use projects, residential properties, and logistics warehouses.

CT was founded as a specialist in the office market. In recent years, the firm has expanded its investment strategy to cover  other segments, including residential, and currently develops assets totalling over 350,000 sqm. Among other remarkable projects, CT currently spearheads the development of the largest mixed use eco-district in Spain, laMercedes, with a total of 185,000 sqm.

The company has a multidisciplinary team of almost 50 people, including investment analysts, architects, project managers, asset, leasing and property managers, who cover the entire lifecycle of real estate assets from CT offices in Madrid and Barcelona.

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About Bain Capital Special Situations

Bain Capital Special Situations has $15 billion in assets under management and has invested $28 billion since its founding in 2002. We provide bespoke capital solutions to meet the diverse needs of companies, entrepreneurs, and asset owners – in all market cycles. The strategy brings together credit and equity expertise, as well as corporate and real asset expertise, to provide solutions which cannot be met by traditional providers. We invest globally across capital structures in corporate debt and structured capital solutions, distressed assets, non-performing loans, hard asset opportunities, and growth equity. Our dedicated, global team of 100 investment and portfolio professionals contribute the local expertise and capabilities that enable these diverse investments.

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