M&G Real Estate‘s European property fund is investing €49m in a forward funding deal to acquire two logistics developments in France.
The M&G European Property Fund is acquiring a 25,000sqm 45 Loiret warehouse in Meung sur Loire fully preleased to DHL and the 29,000sqm 28, Eure-et-Loir asset in Poupry.
The assets, developed by Exia, are expected to be completed in April 2026.
Antonin Prade, investment director at M&G Real Estate for France, said: “Despite recent uncertainty and cyclical volatility, the French logistics market continues to demonstrate strong fundamentals, particularly in strategic submarkets like Orléans. We were able to secure these high-quality assets through our local market expertise and strong developer relationships, which enabled this off-market transaction.
“Both developments will incorporate leading environmental features and meet the highest standards of modern logistics specifications, ensuring long-term value for the assets.”
Prade added that the latest acquisitions increase the firm’s footprint in French logistics, bringing its overall exposure to France to €1.3bn.
Simon Ellis, fund manager of the M&G European Property Fund, said: “These acquisitions align perfectly with our fund’s strategy to increase exposure to logistics in established core European locations. The combination of a pre-let asset alongside a speculative development presents an attractive risk-adjusted return profile for our investors.
“As market conditions improve in 2025, we continue to execute our strategy of securing high-quality assets in supply-constrained markets where we see potential for stable income and rental growth. This investment demonstrates our long-term commitment to France as we continue to diversify our portfolio across logistics and residential sectors throughout continental Europe.”
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