KKR and Etche, the global investment firm’s French logistics platform, has purchased the Scott logistics portfolio in France from Ivanhoé Cambridge.
The portfolio comprises five buildings with a total floor area exceeding 160,000sqm. The assets, two of which have just been completed, are located in prime logistics zones in the Dorsale, on the outskirts of Lyon, Grenoble, Orléans, Compiègne and Strasbourg. The buildings are fully occupied by anchor tenants on long-term leases.
The acquisition continues Etche’s strategic focus on the logistics sector and is KKR’s first transaction in France through its European core-plus real estate strategy, which focuses on investing in high-quality, substantially stabilised assets with medium-term value-growth potential.
Vincent Lauret, president of Etche, said: “The acquisition of this portfolio is a clear demonstration of our ability to swiftly execute significant deals in a challenging market environment.”
He said: ”This strategic portfolio combines strong fundamentals and significant potential for value appreciation, which will allow us to navigate the current period with confidence. It serves as an excellent foundation upon which we can soon aggregate new buildings of similar quality.”
Mai-Lan de Marcilly, managing director and head of transactions for France and hotels, at KKR, said: “This first acquisition through our core-plus strategy in France reflects our desire to acquire a quality portfolio for the long term, particularly in the logistics sector.
“We expect that the sector fundamentals will continue to be very positive for the years to come, particularly given the lack of future supply in France, which should continue to benefit owners of existing, quality assets.”
Ian Williamson, managing director and head of core-plus real estate in Europe at KKR, said the deal was in line with KKR’s strategy in France “to invest in high-quality assets in prime locations and with strong fundamentals, and where we have the potential to drive value”.
Maud Wargny, senior director of investments for Europe at Ivanhoé Cambridge, said the decision to sell the Scott portfolio meant the Canadian institutional investor could “recycle our capital in the logistics market”.
Wargny added: “We remain convinced of the logistics sector’s resilience, and this sector will continue to be a strategic priority for us over the long term through the growth of the Hub&Flow platform in Europe along main logistics corridors.”
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