As Ares completed a €325 mln French logistics acquisition from Blackstone, another French portfolio came onto the market.
Overall investment volumes in France in Q1 2024 collapsed by 69% compared to last year's first quarter (to a total of €2.8 bn - MSCI figures), but logistics are bucking the trend.
Ares has completed the €325 mln acquisition from Blackstone of nine warehouses in prime locations in Paris, Lyon, Orleans, Dunkirk and Marseille, saying it liked the 'strong fundamentals and limited supply of prime assets.'
Eastdil and JLL, who advised Blackstone on that deal, are reported to have lined up another French logistics portfolio to market, this time for Tristan Capital Partners. Costar said the portfolio numbers 28 properties.
Data company GIE ImmoStat recorded a 43% rise in French logistics deals in Q1 2024 driven by the sector's repricing and improved liquidity in the sector, including for larger deal sizes.
The other active market this week, where large lot sizes traded, is Berlin residential, with both Vonovia and Covivio selling down part of their portfolios there, in separate transactions. In Berlin's office sector, AEW sold a building out of its German City Office Fund, but an office deal between Dutch developer Edge and Deka collapsed.
A mid-sized London office transaction in the popular Mid Town area went through at a 4.9% yield, as Derwent London sold the Turnmill building.
The largest private debt facility completed was by Canary Wharf Group. CWG, owned by Brookfield and Qatar Investment Authority, revealed both a £900 mln plunge in the value of its Docklands office buildings in 2023, and progress in refinancing maturing loans.
The group announced that lenders on 25-30 Churchill Place, a 90,000 m2 tower, agreed to extend the debt for a further five years. The Financial Times reported that the financing was advanced after CWG agreed both to pay down about £100 mln of £439 mln in loans, and to higher amortisation, reflecting the fall in the asset's value.
CWG declined to name the lenders. The original line up when the tower was constructed between 2012 and 2014 were Barclays, Lloyds, RBS and Pbb Deutsche Pfandbriefbank. CWG has further maturities coming up in November, on £564 mln secured on 1-5 Bank Street, and a £350m bond tranche, next spring.
We also track a further eight debt deals. An update on one fund in the market sees Blackstone approaching its fundraising target for its next European opportunity vehicle, BREP Europe VII.
