O'Donnell acquires logistics complex in Mexico City

O'Donnell Capital Management, an industrial real estate fund, announced the acquisition of a logistics complex that includes five multi-tenant “in-fill”, “last-mile” properties , called OD888, and that add up to a total of 38,765 m2 of profitable area .

The complex is located in Mexico City, in the Gustavo A. Madero mayor's office, serving the third most populated metropolitan area in the world with a population of 20.5 million people and which, as of today, presents areas of opportunity in infrastructure for e-commerce.  

The name of the OD888 complex is the result of its privileged location, being eight kilometers from the Mexico City International Airport, 8 kilometers from Paseo de la Reforma and 8 kilometers from the nearest town with 2.8 million people. Both the location and the complex are strategic for the sector, since they allow the creation of operational efficiencies, accelerate the speed of movement of the merchandise, ensure the speed of delivery and minimize transportation costs and risks.

With an investment of 40 million dollars, the complex is made up of warehouses with spaces from 989 m2 to 27,737 m2. It also has features designed for a “last mile” logistics space such as: parking area for cars, vans and trucks, cross-dock configuration and cold storage.

The timing of the OD888 offer is ideal for e-commerce providers since, during 2020, this sector has presented growth rates of 50% with peaks of more than 100% due to the situation generated by Covid-19. At the end of 2019, sales through electronic commerce represented 3.1% of all national consumption, however, it is expected that by the end of 2020 this percentage will increase by 50%, which would increase its share to 4.7% of the total. .

The investment will promote the generation of new jobs, as well as the reduction of the carbon footprint as it is a “value-add” complex, reconverting an existing space and keeping demolitions and earth hauling to a minimum.

With this acquisition, O'Donnell has committed more than half of the resources available to invest in its CKD fund through two investments that comply with the guidelines established by its investors and, in addition, is shaping up to consolidate a portfolio specialized in the logistics sector and diversified by type of tenant and geographically in the metropolitan area of ​​Mexico City.