Barings acquires prime speculative logistic development in France

Barings Real Estate Advisers has acquired a logistics facility and office building near Paris from Panhard Group. This property is Barings’ second acquisition in France on behalf of a new pan-European, multi sector, value add investment strategy.

This new-construction facility of 30,418 sq m of Grade A warehouse and office space is located 35 kms south of Paris in Le Coudray-Montceaux on the French Dorsale, a motorway that serves as France’s primary logistics corridor and connects the South of France with northern and eastern Europe. This facility is the third structure to be built in the last six years in a new logistics park with well-known occupiers like Carrefour, XPO and Kühne + Nagel, which will total 195,000 sq m following the addition of this latest building. Construction is expected to be completed by the end of July 2018. 
Gunther Deutsch, European Head of Transactions at Barings Real Estate Advisers, says: “We are pleased to have secured another great asset for one of our European value add strategies. The diversity of risk and usage for this value add strategy in particular now includes office, retail and logistics assets. We are planning to further strengthen our French portfolio not only in the value add sector, but are also looking at Core and Core plus property transactions across the  office, retail and logistics sectors within the country.”
Séverine Laffineur, Country Head of France at Barings Real Estate Advisers, says: “We are excited to include this asset in our value add portfolio in France. The property which will be developed by Panhard Group, one of the main logistics developers in France, will be a unique opportunity along the A6, the famous French strategic logistics corridor. The logistics market in France is getting more mature and still offers a good premium compared to others sectors. Strong demand, coupled with a lack of new prime offerings, as well as the boom of e-commerce, means we are confident that we will be able to secure the letting of this new development in the coming months.”