Savills Investment Management has made its first acquisition for its European Logistics Fund 3, acquiring a newly constructed distribution centre in Greater Paris for €83.8m.

The open-ended fund, set up for German institutional investors, raised €122m from two investors in a first close last year.

The prime, grade-A distribution centre located in Réau, on the outskirts of Paris, was sold by Barings.

It offers approximately 67,000sqm of space and is fully leased to two logistics service providers on long-term agreements.

A €33m distribution centre in Wrocław, Poland has been contractually secured for the fund, and two distribution centres in the Netherlands, worth a combined €75m, are in advanced negotiations.

Savills IM’s previous fund, European Logistics Fund 2, was closed to new investors at the beginning of 2019, raising €560m.

It is nearly fully invested with €40m of equity remaining.

Daniel Hohenthanner, director of investment at Savills IM, said: “We are delighted that we could secure as a first investment for our new logistics fund this grade-A distribution centre in one of the largest metropolitan regions in Europe.

“A second transaction for this fund in Wrocław has already been signed and is expected to be transferred to the fund in January.

“As a result, more than 40% of the current capital commitments would be invested shortly after fund launch. This again demonstrates our strength in securing and successfully implementing attractive logistics properties in a very competitive market environment.”

Barings acquired the property in Réau when it was constructed in November 2018 on behalf of institutional investors.

Severine Maumy-Laffineur, managing director and real estate country head for France at Barings, said: “This sale completes our business plan much ahead of schedule and delivers exceptional returns for our investors.

“This validates our strategic approach to capitalise on the strong demand for prime logistics assets in the Paris region. This sale contributes to a strong year for Barings in France, with €325m of transactions completed in 2019.”