US real assets investment manager Realterm has acquired a 15-property logistics portfolio in France, totalling more than 73,000 m2.
The cross-dock properties are located in major French cities such as Paris, Marseille, Toulouse, and other key urban areas, and are fully leased, among others to XPO Logistics.
Financial details of the transaction were not disclosed.
The assets are the first to be acquired by Realterm in France. The company is also active in Belgium, the Netherlands and Spain where it has purchased a string of properties in the last two years.
With over $13.5 bn (€13.5 bn) in assets across six private equity fund series, Realterm focuses on ‘mission critical, transportation-advantaged logistics real estate with high flow through characteristics, designed to move – not store – freight’. In the US, XPO Logistics leases 27 Realterm properties totalling more than 130,000 m2.
‘The French logistics market is characterised by a strong supply/demand imbalance, with record low vacancy and incredibly strong demand. Very few new properties are coming to market given the limited availability of land and the difficulty in obtaining permits,’ said Hugues Tallandier, head of investments for Southern Europe at Realterm.
He added: ‘Transportation-advantaged logistics facilities accelerate the efficient flow of goods through the supply chain and are in strong demand across Europe. As a result, rents are rising, making this portfolio a notable addition to our European holdings.’
Alberto Radice Fossati, fund manager at Realterm, commented: ‘The existing leases on these properties are fully inflation linked with a very attractive mark-to market opportunity over the next few years. These represent exactly the type of assets we will pursue in what could be an unpredictable market where the ability to grow income will be essential to generate our target return.’
Realterm was advised on the legal side of the transaction by R&D Notaires and Fairway, while ETYO was a technical and environmental advisor, and Longevity Partner an ESG advisor. JLL represented Realterm as buy side broker. The transaction was marketed by CBRE and BNP.
