Savills IM acquires prime Paris logistics property from Barings
Savills Investment Management (Savills IM) has acquired a newly-constructed prime Grade A distribution warehouse in Greater Paris, France on behalf of its European Logistics Fund 2 (ELF 2).
The asset was acquired from Barings, one of the world’s largest diversified real estate investment managers, on behalf of institutional investors.
The asset is located in Le Coudray-Montceaux on the outskirts of Paris and in one of the strongest logistics locations along the "La Dorsale" logistics axis, which runs from Lille via Paris and Lyon to Marseille. It offers circa 30,420 sq m of space and is leased to a leading logistics service provider on a long-term agreement.
Barings agreed to forward fund the speculative development in 2017 and the high-quality distribution warehouse was completed in September 2018, achieving a BREEAM ‘Very Good’ rating. This is Barings’ first sale in France having entered the market in 2016.
This is Savills IM’s second purchase in France for ELF 2 within a few weeks, with another distribution warehouse in the Lyon region also recently acquired. The fund now holds a total of 16 properties in six countries, four of which are in France.
Savills IM was advised by Allez & associés, De Pardieu Brocas Maffei and Drees & Sommer. Barings was advised by Oudot & Associés and BNP Real Estate.
Laurent Vouin, Head of France and Belux at Savills IM, says: “This purchase gives ELF 2 yet another first-class distribution warehouse in France. Due to its excellent location, the strong credit rating of its tenant and its flexible use of space, the asset fits the fund’s investment strategy perfectly. Its location also adds to the fund’s geographic diversification, given its French portfolio now includes properties in Orléans, Bordeaux, Lyon and Paris.”
Severine Maumy-Laffineur, Managing Director, Country Head for France, Barings, says: “This sale is ahead of our value-add business plan and delivers exceptional returns for our investors. When we agreed to forward fund this asset we saw an opportunity to capitalise on the strong demand for prime logistics assets on the edge of the French capital. This was evidenced by our ability to attract a high quality tenant before the asset had completed.”