Mango sells and re-leases own logistics center

By

Susan Spies

Published
Dec 20, 2016

Spanish retailer Mango has sold and re-leased back its state-of-the-art logistics center in the Mango Logistics Park near Barcelona Spain. The buyer and new landloard is VPG, a Czech Republic-based company specialized in the development and management of logistics facilities and industrial parks.

The deal, valued at 150 million euros ($155.87 million), covers the brand new logistics building and the acquisition of additional 150,000 square meters of development land. 

The international fashion Group Mango, with headquarters north of Barcelona, will rent back the logistics building from VGP under a 30 years lease agreement. Work on what VGP says is one of the most modern logistics buildings in Europe is currently being completed. The initial leasable area, developed in accordance with environmental standards to protect the biodiversity of the large site, will become fully operational at the start of 2017. The Mango building allows for further extension possibilities to develop around 80,000 m² of additional area in the future. Once fully developed, the Mango building will offer approximately 260,000 m² of warehouse and office space.

In a statement, VGP described the Mango Logistics centre to be equipped with "the latest technology and logistics robotics capable of handling 75,000 clothing units per hour and streamlining all the logistics processes of the Mango Group. This centre will supply the entire Mango network worldwide which consists of more than 2,200 retail outlets in 110 countries."

Jan Van Geet, CEO of VGP, commented: "We are very happy to start a long term partnership with Mango. Mango has a long Spanish history and has decided to serve their entire network from here. This is a competitive logistic challenge. We are happy to support them in establishing a logistics centre which is fully capable to provide all necessary structure and tools."

Daniel López, Executive Vice-President of Mango, added: "VGP with their long experience as investor and developer of industrial and logistics parks is the perfect partner for Mango. It is a Win-Win deal with both partners focusing on their core competencies."

VGP plans to develop the additional land under the transaction for other potential tenants, the details of which were not announced.