A newly created pan-European logistics joint venture between the real estate arm of Ontario Teachers’ Pension Plan and Boreal IM has added 15 Dutch warehouses to its portfolio.
The Boreal IM & Cadillac Fairview JV has invested an undisclosed sum to buy the 142,000sqm logistics portfolio in the Netherlands from Europa Capital.
Earlier this year, the joint venture – formed to create a €3bn pan-European logistics portfolio – invested €250m to acquire an industrial park in Park Royal in West London and another in the Port of Rotterdam as the first two acquisitions for the newly created partnership.
The latest transaction brings the joint venture’s total holdings in the Netherlands to 240,000sqm.
The UK, Germany, France, Spain and Italy are amongst the other major European locations identified by the venture, which can invest across the entire risk-return spectrum, including standing assets and ground-up developments, the companies said.
James Farmer, a partner at Boreal IM, said: “We were particularly attracted by the low in-place rents, which combined with the leases’ indexation provisions, will offer an attractive combination of defensive cash flows with material medium-term upside.
“It dovetails well with our existing holding in the Netherlands, a 100,000sqm estate in the Port of Rotterdam. Despite the current macro headwinds, we will continue to selectively make further investments for our portfolio on behalf of the JV with Cadillac Fairview.”
Jenny Hammarlund, the head of Europe and managing director at Cadillac Fairview, said: “Today’s announcement, which sees us acquire a unique group of assets in a strategic market, once again demonstrates the strength of our partnership and joint commitment to growing our logistics portfolio with best-in-class assets and sound ESG practices.”
Confirming the deal, Europa Capital and its joint venture partner, ARC Real Estate Partners, said the sale of the portfolio was made on behalf of its value add Europa Fund VI fund.
The portfolio, which constitutes the entirety of the fund’s Dutch Light Industrial Platform (DLIP), is 95% occupied.
Jason Oram, partner and fund manager at Europa Capital, said: “The sale of DLIP is in line with our business plan and generates strong returns for the fund’s investors.
“Since the launch of the platform, we have assembled a portfolio of high-quality units, including three assets that we developed speculatively and subsequently leased, which are let to strong occupier covenants, and have increased in value.”
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