Barings acquires prime logistic Paco Portfolio in France
Barings Real Estate has acquired a 90,000 sq m prime logistics warehouse portfolio (the Paco Portfolio) located in the towns of Savigny le Temple and Réau, in the southern part of Paris.
The investment is part of Barings’ pan-European core-plus investment strategy, on behalf of an institutional investor.
The portfolio contains two grade 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 sq m 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 sq m extension. The Réau warehouse was built in two phases and comprises a total 67,000 sq m with 42,000 sq m pre-let to a French logistics firm, and 24,950 sq m recently completed in late October 2018 with active letting in process.
The vendor is a private investor advised by CBRE (Real Estate) and Etude 14 Pyramides (Notary). Barings was advised by Oudot & Associés (Notary), LPA (financing), DLA (legal), OBNI (technical) and BNP Paribas Real Estate. The deal was financed by La Banque Postale advised by Depardieu Brocas Maffei (lawyers) and étude Wargny Katz (Notaries).
Séverine Maumy-Laffineur, Barings Managing Director & Real Estate Country Head - France, says: “This is Barings’ third logistics acquisition in France this year, bringing our total French logistics portfolio to approximately 160,000 m2. 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 EUR200 million.”