Barings has acquired a logistics real estate asset near Paris, France on behalf of a European logistics joint venture between a US insurance company and a Middle Eastern sovereign wealth fund targeting core-plus/value-add assets.

The real estate manager invested an undisclosed amount to buy the asset in Saint Ouen l’Aumône in the Cergy-Pontoise area from a private investor.

Barings said the pre-let 24,000sqm asset is being refurbished and scheduled to complete in May. Refurbishment work on the property is being undertaken by Vectura.

Séverine Maumy-Laffineur, managing director and country head real estate France at Barings, said: “This transaction gave us an opportunity to reposition a property in a strong local market that is characterised by a shortage of new or refurbished space, with robust demand for urban logistics and light industrial real estate.

“This is our second project with Vectura, whom we know will deliver a high-quality product, which will enable our expert team to capitalise on the good momentum in the logistics leasing market and secure occupiers for the remaining available space. With our last deal signed during late 2020, the French logistics portfolio now comprises nine assets totalling €300m.”

Robert Schneider, managing director, portfolio manager, at Barings, said: “This latest deal is the second in France and third across Europe that we have completed on behalf of this strategy. With a fourth deal already signed in France, our venture, which has an initial investment target of €500m, has made good progress over the last year.

“Our focus remains on logistics markets that demonstrate attractive cyclical and structural drivers with resilience to the headwinds associated with the pandemic. In addition to Germany and France, markets we are targeting in 2021 include Italy, Spain, the Netherlands and the Nordics.”

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