ESR Europe buys 22,000sqm French logistcs asset from Barings

A Barings-managed pan-European logistics joint venture (PELV), created by a US insurer and a Middle Eastern sovereign wealth fund, has sold a French logistics asset to an ESR Europe fund.

The 22,000sqm last-mile logistics asset in Savigny-le-Temple was sold to ESR Europe, acting on behalf of its value-add discretionary fund ARA Europe Active Real Estate Fund V, for an unspecified sum.

ESR Europe said the logistics facility marks the fifth property added to Project Jasmine, the firm’s French urban logistics aggregation initiative launched in 2023.

The Savigny facility will undergo repositioning, with a business plan that includes upgrading the vacant property to current standards.

Quentin Kerrault, head of investment at ESR Europe, said: “We are delighted to add the Savigny asset into our value-add last-mile portfolio in France. Our investment thesis centres around large, established conurbations and, by leveraging the e-commerce boom and creating high-quality facilities, we’ve maintained high occupancy and rental growth in our assets.

“Another key aspect of our approach in France has been the aggregation of assets to create value. By building a diversified portfolio, we not only mitigate risk but also enhance the price premium of its holdings.”

Guillaume Bieganski, managing director and France country head at Barings Real Estate, said: “Savigny-le-Temple is a high-quality asset in one of France’s most dynamic logistics markets, and its successful sale reflects both investor appetite for core-plus assets and the strength of our local execution capabilities.

“The logistics market in France remains an attractive one for Barings given the fundamentals of the sector, and we’re continuing to explore opportunities in logistics as well as our other preferred sectors of residential and prime offices in city centre locations.”

Barings acquired the property, built in 2004, in June 2018 as part of a two-asset logistics portfolio.  

Rob Fairfax, director and portfolio manager for PELV, said: “This latest disposal on behalf of PELV demonstrates the strength of our asset management proposition amid changing economic conditions.

“With Barings’ approach of combining on-the-ground expertise with global insights, we’re well placed to continue to look for further opportunities on the buy-side targeting core-plus industrial and logistics assets – particularly existing under-rented assets with short term reversionary potential – in our target jurisdictions, which are France, the UK, Nordics, Spain, Germany, Italy and the Netherlands.”

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