M&G Real Estate’s European property fund has expanded its French portfolio with an €86m acquisition of two food logistics assets.
The M&G European Property Fund has bought a cold-storage facility near Paris and a food distribution warehouse near Avignon leased to Biocoop.
The latest acquisitions follow a busy nine-month period for the €5.2bn M&G European Property Fund, during which it has completed or agreed more than €1.6bn of deals, including over €500m in logistics.
The sector now accounts for €1.3bn of the vehicle’s portfolio.
Antonin Prade, investment director France at M&G Real Estate, said assets supporting the distribution of essential food products benefit from steady demand, strong tenant retention and strong rental growth perspectives, which all perfectly match the firm’s long-term core strategy.
Prade added: “Beyond their investment fundamentals, these facilities play a major role in France’s food supply chain, enabling the efficient delivery of everyday goods to consumers across the country.
“These acquisitions demonstrate our ability to source and acquire high-quality opportunities, while maintaining investment discipline in a challenging real estate market. They also reflect M&G’s continued commitment to investing in assets that support the real economy, and reinforce our presence to France, where our real estate portfolio now totals €1.5bn.”
Simon Ellis, fund manager of the M&G European Property Fund, said: “We continue to focus on assets that combine strong investment fundamentals with an important role in the real economy. Food logistics remains one of the most resilient segments of the market, benefiting from enduring consumer demand, limited supply of modern facilities and high barriers to entry.
“These acquisitions strengthen our exposure to a sector where long-term structural trends support income resilience and value creation.”
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