Barings has acquired a 416,667 sq ft logistics asset in Madrid, Spain, for €42.8m (£37.3m) on behalf of institutional investors.

The acquisition was structured through a sale and lease-back agreement.

The facility is let to a Iberian logistics group, which has occupied the lot for over 17 years and is set to enter into a new 20-year FRI lease.

Barings has also bought a plot of land adjacent to one of the existing units, which can accommodate up to 113,021 sq ft of additional warehouse space.

“Favourable demographic drivers and rising e-commerce penetration continue to underpin the growth of the logistics market in Spain, a trend we expect to continue over the medium to long term,” said Adolfo Favieres, managing director, real estate country head, Spain at Barings. “ This portfolio is perfectly aligned to our core investment strategy, offering long and sustainable income from a good covenant, with a tenant that has heavily invested in these assets which are key to their operations in Spain.”

Barings was advised by Arcadis, Dentons and Deloitte.