Barings Real Estate, part of Barings, has acquired a 90,000-square-meter (969,000-square-foot) prime logistics warehouse portfolio (Paco Portfolio) located in the towns of Savigny le Temple and Réau, in the southern part of Paris.
The vendor is a private investor advised by CBRE (Real Estate) and Etude 14 Pyramides (Notary).
The investment is part of Barings’ pan-European core-plus investment strategy, on behalf of an institutional investor.
“This is Barings’ third logistics acquisition in France this year, bringing our total French logistics portfolio to approximately 160,000 square meters [1.7 million square feet],” said Séverine Maumy-Laffineur, Barings managing director and real estate country head – France. “With the continued growth in online sales, logistics assets remain attractive investments for institutional investors interested in long-term growth opportunities. Given our global footprint and expertise across sectors, we are confident in our ability to complete the lease-up of the Réau property, and we look forward to growing our portfolio in France with additional investments in the core to value-add profile. Thanks to the Paco Portfolio acquisition, Barings has increased significantly their real estate assets under management in France to seven assets for a total net value of approximately €200 million [$227 million].”
The portfolio contains two class A warehouses and is ideally located on the French Dorsale, a strategic axis connecting the largest cities in France: Lille, Paris, Lyon and Marseille. The Savigny-le Temple warehouse was constructed in 2004 and is classified as a Seveso low. It comprises 22,512 square meters (242,317 square feet) and is fully let to one of the world's largest providers of transportation and logistics services. The property is also fully permitted for a 10,200 square-meter (110,000 square-foot) extension. The Réau warehouse was built in two phases and comprises a total 67,000 square meters (721,000 square feet) with 42,000 square meters (452,000 square feet) pre-let to a French logistics firm, and 24,950 square meters (2,69,000 square feet) recently completed in late October 2018 with active letting in process.
