Boreal IM and Cadillac Fairview have expanded the pan-European logistics investment joint venture (JV) into Spain and France with the acquisition of assets.
The partnership which was created last year has invested €70m to buy two warehouses and developable land in Girona in Barcelona and a site, which includes an existing warehouse and development land on the outskirts of Paris.
Nikos Koulouras, partner at Boreal IM, said: “Spain is one of our target markets and we are very pleased to be expanding the reach of our pan-European portfolio to the Catalunya region, one of the strongest and most dynamic logistics markets on the continent. For retailers, the proximity to both Barcelona and France is attractive, especially given constraints on development in the south of France and Barcelona.”
The Barcelona buildings are fully occupied by online sportswear retailer TradeINN.
Koulouras said the adjacent land “will allow us to develop an additional 16,000sqm which can either accommodate TradeINN’s expansion requirements or serve the strong occupier demand in the wider Barcelona market”.
“We were attracted to the stable cash flow as well as potential upside offered by this opportunity.”
The fully-let asset in the north of Paris was acquired from an American multinational manufacturer and distributor in a sale and leaseback transaction. The 170,000sqm site, comprises a 42,600sqm logistics warehouse and 7ha of development land, and is part of a consolidated industrial estate that counts Geodis and Chronopost as occupiers and Prologis and Mileway as owners.
Xavier Aubrun, vice-president at Boreal IM, said: “Our acquisition programme in France has gotten off to a strong start with this Paris transaction. The investment offers a unique opportunity to benefit from a long-term tenancy with a S&P 100 multinational firmly established in the area, as well as the opportunity to develop a state-of-the-art and ESG-driven logistics park.”
Boreal IM said it has also established a local presence in Paris and plans to have a local presence in the Netherlands and other strategic locations in the near future.
“Our local Paris presence will allow us to execute the business plan efficiently in the coming years. It will also enable us to pursue our investment programme across France, which represents an important part of the JV’s industrial strategy,” Aubrun said.
Jenny Hammarlund, head of Europe and managing director at Cadillac Fairview, said: “Cadillac Fairview is thrilled to be expanding into the continent, specifically the much sought-after Barcelona and Paris regions, with our partner Boreal.
“This deal demonstrates the overall momentum of our joint venture, which was only formed a short time ago. Together, through our shared vision and commitment to excellence, we are building a resilient pan-European portfolio that puts ESG at the heart of all we do.”
Last year, Boreal IM and Cadillac Fairview, the real estate arm of Ontario Teachers’ Pension Plan, invested €250m to buy assets in the UK and Netherlands, as part of the partnership’s plan to create a €3bn pan-European logistics portfolio.
Following the latest deals, the Boreal IM & Cadillac Fairview JV has now completed acquisitions in four of its six target locations since its 2022 formation. Germany and Italy are its other target markets.
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