Fonciere des Regions subsidiary Fonciere Europe Logistique said it has agreed to acquire 830,000 m[sup]2[/sup] of logistics assets in two separate transactions for a combined EUR 590 mln. The company said the acquisitions would expand its asset base in France, mark its entry into the wider European market, strengthen its equity and open its share capital to Morgan Stanley.
Fonciere des Regions subsidiary Fonciere Europe Logistique said it has agreed to acquire 830,000 m2 of logistics assets in two separate transactions for a combined EUR 590 mln. The company said the acquisitions would expand its asset base in France, mark its entry into the wider European market, strengthen its equity and open its share capital to Morgan Stanley.
In the first transaction, Fonciere Europe Logistique will buy four Garanor logistics platforms in the Paris area and Vitrolles, near Marseille, with a combined 556,000 m2 from Prologis European Properties for EUR 425 mln. Gross yield is about 7% while the transaction should be completed by July 31, 2007, the company said .
The company said it also agreed to acquire a portfolio of 10 logistics platforms in Germany and France from a real estate fund managed by Morgan Stanley for EUR 163 mln. It said EUR 100 mln of the acquisition price which will be paid in Fonciere Europe Logistique shares. The 10 platforms have a combined space of 270,000 m2, with 81% of the surface area represented by platforms in Germany. Gross yield is about 7.4% and the acquisition should be completed by end-2007.
Fonciere Europe Logistique said once the deals have been completed it will have a portfolio of 49 logistics and light industrial sites valued at a combined EUR 1.4 bn, with 91% of the assets in France and 9% in Germany. Including projects under development, the group said it has nearly 2.5 mln m2 of assets. It said it is planning a public share offering to help finance the transactions.
Separately, Fonciere des Regions reported that net profit jumped to EUR 606.5 mln in the first six months of 2007 from EUR196.9 mln in the year-earlier period. Consolidated sales rose 45% to EUR 377.8 mln.