PGIM Real Estate has completed two logistics investments in the North of Greater Paris, France. The two acquisitions are on behalf of its closed value-add strategy, European Value Partners (EVP) II fund.
The first investment is the acquisition of a 240,000 m2 land plot with logistics use in Avrigny, a city located in the Oise department 70 km from the centre of Paris. PGIM Real Estate plans to develop up to three logistics platforms totalling about 110,000 m2 and has signed a preliminary development contract with developer Quartus.
The second investment is the acquisition from Quartus Group, through a forward purchase contract subject to building permit, of a 19,000 m2 logistics platform to be developed in Longueil-Sainte-Marie, an established logistics market also located in the Oise department.
Both sites have direct access to the A1 highway connecting Paris to Lille forming the northern part of the North-South backbone, the prime logistics axis on France. The developments will be Grade-A assets with above-standard technical specifications and best-in class environmental certifications.
Nabil Mabed, head of France, Spain and Portugal commented ‘The digital transformation of the economy continues to drive demand for e-commerce, while the pandemic has increased the importance for industrial companies to produce and store goods close to its customers. In this context of rising demand for logistics space, Greater Paris which is one of the largest economic and population areas in Europe, suffers from a significant lack of supply of quality assets and is experiencing a significant rental growth. These two acquisitions enhance the portfolio of our value-add fund, European Value Partners II, which is more than 60% committed to strong logistics assets and developments in London, Paris, Berlin, Milan and Madrid.’