Barings Real Estate has acquired a 90,000 m2 prime logistics warehouse portfolio located in the towns of Savigny le Temple and Réau, in the southern part of Paris, for an undisclosed amount.
The investment is part of Barings’ pan-European core plus investment strategy, on behalf of an institutional investor.
The so-called Paco portfolio contains two grade-A warehouses, one constructed in 2004 and comprising 22,512 m2 of fully let space, the other built in two phases and comprising a total 67,000 m2 with 42,000 m2 pre-let to a French logistics firm, and 24,950 m² recently completed in late October 2018 with active letting in process.
The vendor is a private investor advised by CBRE. Barings was advised by BNP Paribas Real Estate. The deal was financed by La Banque Postale.
'This is Barings’ third logistics acquisition in France this year, bringing our total French logistics portfolio to approximately 160,000 m2,' said Séverine Maumy-Laffineur, Barings' managing director & 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.'
Following the Paco Portfolio acquisition, Barings has increased its real estate assets under management in France to seven assets for a total net value of €200 mln.