Partners Group has created a French logistics real estate investment joint venture with local developer Proudreed.
Partners Group, investing on behalf of its clients, said the newly created joint venture has been seeded with €120m worth of properties.
Partners Group said the joint venture intends to scale this portfolio to more than €500m in gross asset value through new acquisitions and developments over the next two years.
Rahul Ghai, managing director, co-head private real estate Europe at Partners Group, said: “The multi-let industrial sector is seeing high levels of demand due to the rise of e-commerce, yet shrinking supply, which is being caused by competition for land from other real estate segments, such as residential.
“We believe aggregating a portfolio of properties over time to get exposure to this demand offers superior economics, making this portfolio an attractive investment opportunity for Partners Group and our clients. The industrial sector in France has also performed well with high collection and occupancy ratios during historic downturns.”
Romain Ruiz, member of management, private real estate Europe, Partners Group, said: “Through partnering with a best-in-class local operator such as Proudreed, securing a high-quality seed portfolio and pipeline of more than €300m gross asset value, the partnership offers our investors a large and diversified portfolio of industrial assets in France, with additional room to scale.”
The portfolio represents Partners Group’s third direct real estate investment in Europe so far this year and its second in the industrial sector.
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