Clients at the centre of the business plan: Montepino’s Strategy for success
After doubling the scope of its business plan in just three years, the Spanish company is setting its sights on expansion into Europe
Montepino Logística, one of the largest logistics providers and asset managers in Spain, has managed to double the scope of its business plan over the last few years, building a portfolio with a value of nearly €1 billion: an enviable figure, and one which is very appealing to investors. How have they done it? What has this company done to stand out from its competition and become the largest logistics developer specialising in built-to-suit projects in Spain? To Juan José Vera, the Director-General of Montepino, the answer is very simple: "Montepino's key to success is primarily our business model, in which the client is always at the centre. We have put our logistics operators at the heart of our business plan, structuring our entire team around them."
A team designed around the client
It seems logical that when discussing a company's strategy, satisfying clients' needs would come up as a top priority. However, when this conversation is about logistics providers, meeting all of an operator's needs is truly a mammoth task. Satisfying the needs of a sector which is constantly evolving can only be achieved through flexibility and by becoming real experts in logistics, and these are the keys to Montepino's success.
The company has designed its team entirely around being able to provide comprehensive solutions to each and every one of a client's requests, and has hired all the professionals needed to achieve this. Its team consists of over 30 people working on the value chain in management and logistics development, including architects, engineers and technicians, who work with tenants from the start of a project to the very end, meeting all the needs that arise along the way and providing the best innovative solutions to make their projects a reality.
Having a fully integrated team allows Montepino to be extremely flexible when faced with tenant requests, to react to situations that arise mid-construction and to adjust projects to their needs.
Satisfied clients become repeat customers
Montepino's efforts to professionalise the logistics sector in Spain by making the client the linchpin of development have enabled it to establish fluid communication and personalised service with each one of its tenants. This has allowed them to build long-term relationships, many of which are with repeat customers, who have found in Montepino the perfect ally to help them continue to grow. The company's WAULT to break figures are testimony to this: in comparison to an average of 2 or 3 years across the sector, Montepino's average is over 8.3 years across just 10 leases and 8 clients. It's no wonder the company has maintained a steady market share of 45% in the BTS segment, while also optimising return on investment for its investors with net yields exceeding 25%. These figures form the springboard for its launch onto the European market.
International growth plan
Montepino's approach of perfectly adapting to its clients' needs has allowed it to earn a place in the top 10 of the largest logistics developers in Europe and to look towards the continent to continue the growth it began two decades ago in Spain. It has maintained this growth consistently ever since, remaining unaffected by external factors such as the current coronavirus pandemic.
After achieving its goal of developing a million square metres for logistics space since 2014, which works out at an average of 150,000 square metres of new GLA each year, Montepino's new business plan focuses on doubling its value again over the next five years – a goal which, bearing in mind everything the company has achieved since 2017, could even be considered conservative.