Panattoni, the largest logistics real estate developer in Europe, in partnership with Newport Logistics Fund II is to develop a 24,200 sq m build-to-suit facility near Málaga in southern Spain.

The facility, located at Antequera Business Park in the rapidly growing logistics hub in the heart of Andalusia, will be developed for Leroy Merlin, the French home improvement retailer, which is seeking facilities near major consumer hubs and key ports in Spain.

Panattoni and Newport Logistics Fund, acting on behalf of its Newport Logistics Fund II, have just acquired the development site. Panattoni has requested a construction permit and is aiming to begin construction before the summer. The facility will become one of Panattoni’s most significant assets in the Iberian Peninsula, as it will be part of the logistics network that the Andalusian government is developing to serve as a key link in the European Union’s supply chain, connecting Europe with Africa, the US and Asia.

The acquisition of this plot strengthens Panattoni’s commitment to Andalusia, a region experiencing remarkable growth in the logistics real estate sector, driven by the rise of e-commerce. This growth is evident across multiple provinces, with Seville and Málaga emerging as key logistics hubs.

Antequera is ideally located at the most important crossroads of Andalusia, connecting north and south via the A45 and west and east via the A-92 and its main cities and ports, such as Malaga and Algecira´s port, the largest container port in Spain. The level of vacancy in its logistics real estate sector is below 2%, according to CBRE, which advised on the transaction.

Gustavo Cardozo, Managing Director of Panattoni for Spain and Portugal, said: “The new acquisition and development in Antequera is a key step in our expansion strategy in Spain, reinforcing our presence in one of Southern Europe’s most promising logistics regions”.

Szymon Ostrowski, Managing Director of Newport Logistics Fund, said: “This is the fund’s first project in Spain, reflecting our strategy to diversify our assets in key locations, where we are able to deliver above-average returns”.