A JV between the Ontario Teachers' Pension Plan and Boreal IM has acquired a portfolio five industrial and logistics assets in France – the programme’s second deal in France after the acquisition of a standing asset and development plot in Paris in 2023.
The pair have agreed terms on a 165,000 m2 package of fully-let assets with an investment value experts think could be in the region of €145 mln. The firms declined to comment.
The assets are located in Lyon, Nantes, and Lille, core cities within the French logistics “Backbone” and “Atlantic Corridor” where there is a structural undersupply of logistics assets and limited potential to develop additional space.
Ontario Teachers and Boreal liked the properties given they are within supply-constrained locations where occupier demand remains strong, but where there is the potential to improve rental levels in the mid-term.
Ontario Teachers' Pension Plan Board has assets of $249.8 bn while its partner, Boreal, is a pan-European investment management firm founded by its partners, whose current focus is logistics and light-industrial properties across Europe.
The package consists of:
• Belleville: A 50,000 m2 asset north of Lyon, constructed in 2010, and fully leased to a pharmaceutical company as its main national logistics centre.
• Étoile sur Rhône: A 35,000 m2 facility built in 2018 located south of Lyon and leased to two French 3PLs fulfilling national and international contracts.
• Nantes: A 19,000 m2 part temperature-controlled asset, fully let to a local 3PL which uses the asset to fulfil contracts for clients located in northwest France
• Angers: Built in 2018, this 42,000 m2 asset is leased to a global contract logistics provider to serve central and western France.
• Lille: An 18,000 m2 facility located in Lille’s most established logistics cluster. Built in 2018 and fully leased to an international 3PL which has consolidated its regional operations in the asset.
Initiatives include obtaining “Excellent” BREEAM certifications and conducting CRREM / net zero carbon analyses to direct decarbonisation works, such as the installation of photovoltaic systems and LED lighting.
Jenny Hammarlund, senior MD Real Estate at Ontario Teachers, said: ‘This portfolio is a strategic acquisition for the JV, significantly growing our AUM in France and further diversifying our geographic presence. We now have the opportunity to work with a strong roster of tenants to implement ESG initiatives as we continue to build our best-in-class portfolio and create value through active asset management.’
Xavier Aubrun, VP at Boreal IM, said the deal was occurring at a time when the market was finding a ‘new equilibrium’.
‘This acquisition allows us to firmly establish the JV in France through a high-quality portfolio in key markets with strong fundamentals. The French market is a key target for us where we are expecting to grow our platform further. As the market is finding its new equilibrium, 2024 is set to be another busy year for our JV.’
Boreal and Ontario Teachers' Pension Plan were advised by Clifford Chance, NOTER, CBRE, Etyo and PwC.
