Valor Real Estate Partners (Valor) has increased its footprint in the high conviction Paris market with the acquisition of a 2-hectare brownfield site in the core submarket of La Courneuve, where it intends to bring forward the speculative development of a 10,166 m2 modern urban distribution park.
Made on behalf of its €1 bn investment vehicle, Valor’s total commitment is over €20 mln.
Acquired off-market from a private seller, the site currently comprises two buildings on a low-density industrial estate approximately 8km north of central Paris, located in close proximity to several key arterial routes including the A86, Paris’ second ring road and the A1 (Paris-Lille motorway). It sits in the heart of the Grand Paris regeneration plan and close to the sites identified to host the 2024 Paris Olympic Games, which will restrict the future development of urban distribution space in the area.
Construction of the state-of-the-art urban distribution hub is expected to commence in the 2nd half of 2022. The units will be delivered to the highest possible sustainability standards and be suited to the needs of modern ecommerce and logistics businesses.
Valor is one of Europe’s largest specialist urban logistics vehicles with a portfolio valued over €2 bn located in cities across UK, France and Germany, with a focus on the densely populated and high-conviction markets of London and Paris. Valor deploys capital across the full risk spectrum.
Victor Massias, partner, head of Developments at Valor, commented: ‘This is a rare opportunity to deliver modern, urban distribution space at scale in one of Paris’s most undersupplied submarkets. With demand for space remaining very strong and with future supply set to be restricted by the wider regeneration plans and housing development, we are taking the decision to develop speculatively from late 2022 to capitalise on anticipated future rental growth and strong occupier demand.’
Valor was advised by Oudot, Hogan Lovells, Simmons & Simmons and Les Ateliers 4+.
