Global investment manager Barings has acquired a logistics redevelopment opportunity near Paris, France, from a private investor.
Financial details were not disclosed.
The acquisition was made on behalf of a pan-European logistics joint venture between a US insurance company and a Middle Eastern sovereign wealth fund targeting core+/value-add assets.
Séverine Maumy-Laffineur, managing director and country head real estate France at Barings, commented: 'This transaction gave us an opportunity to reposition a property in a strong local market that is characterised by a shortage of new or refurbished space, with robust demand for urban logistics and light industrial real estate.
'This is our second project with Vectura, whom we know will deliver a high quality product, which will enable our expert team to capitalise on the good momentum in the logistics leasing market and secure occupiers for the remaining available space.
'With our last deal signed during late 2020, the French logistics portfolio now comprises nine assets totalling around €300 mln.'
Refurbishment work on the property is being undertaken by Vectura with whom a development contract has been signed and is scheduled to complete in May 2021. The finished 24,000 m2 asset will be split into six units.
51% of the building has been pre-let on a 10-year firm lease to a third party logistics firm for a mix of dry, cold positive and cold negative storage. The remaining urban logistics space, comprising three units of under 3,000 m2, is being marketed on a speculative basis.
The property is situated in Saint Ouen l’Aumône in the Cergy-Pontoise area, 35 kilometres north west of the centre of Paris.
Robert Schneider, managing director, portfolio manager, at Barings, added: 'This latest deal is the second in France and third across Europe that we have completed on behalf of this strategy.
'With a fourth deal already signed in France, our venture, which has an initial investment target of € 500 mln, has made good progress over the last year. Our focus remains on logistics markets that demonstrate attractive cyclical and structural drivers with resilience to the headwinds associated with the pandemic.
'In addition to Germany and France, markets we are targeting in 2021 include Italy, Spain, the Netherlands and the Nordics.'
Barings was advised by Oudot & Associés (Notary), Etyo (technical and environmental), LPA (legal, tax and structuring, financing). BNP Paribas Real Estate was involved as a real estate buy-side adviser.
La Banque Postale provided the financing and was advised by Wargny Katz (notary) and Depardieu Brocas Mafféi (lawyer).
