Encore+ end JMG to develop two logistics sites in France
Encore+ has signed an agreement with French developer JMG to develop two logistics platforms in France; one in the Isle D’Abeau and the other in the Sénart logistics hubs.
Encore+ has already acquired the Isle d’Abeau land on which a 21,250 sq m Class-A BREEAM Very Good facility will be built. Construction is underway for an expected delivery in mid-2018. The site is located 30km south east of Lyon, on the French ‘backbone’ that links Lille and Marseille and connects to major European countries, in particular Italy and Switzerland. With 2.1 million sq m, it is the largest logistics market in France. It is also close to Lyon Saint Exupéry airport.
A development contract has been signed on the second scheme in Tigery and construction shall be launched in the second part of 2018. Tigery is located 37 km southeast of Paris, within Sénart, the largest market in the Paris region and the second largest in France, comprising 1.4 million sq m and benefitting from excellent road access to Paris and the southern cities of France through the A5 and A6 highways. It also benefits from a frontage on the ‘Francilienne’, the highway that circles Paris, and is close to Orly airport.
Jeffrey King, Fund Manager for Encore+ at Aviva Investors, says: “We see these deals as great opportunities to access well-located logistics sites in France, which is a core focus for Encore+. There is a growing demand for logistics platforms against the backdrop of an increasing urban population and changing consumption patterns. These sites offer strong real estate fundamentals with solid take-up, low vacancy rates and scarcity of quality supply and will also improve the income and property diversification of our portfolio as we continue to grow the fund.”
David Ironside, CIO and Investment Manager for Encore+ at LaSalle Investment Management, says: “I am delighted that we have acquired these unique Grade-A logistics sites in excellent locations in France. The sites have strong fundamentals and a measured leasing risk to the Fund, and as such provide good portfolio diversification through a build-to-core strategy.”