Clarion Gramercy spends €134m on French logistics

Logistics property investment fund manager Clarion Gramercy (CG) has agreed to forward fund two Grade-A French warehouses for €122.5 mln, and unveiled a shed acquisition in France for €11.5 mln.

The three separate transactions, two of which are logistics developments made on behalf of one of its co-mingled funds, take the firm's investment in France since the start of 2018 to over €350 mln.

In Reau, an established logistics location some 40 km southeast of Paris city centre, CG will fund the speculative development of a 68,642 m2 logistics warehouse, with construction commencing in Q1 2020 and expected to take 12 months. Nexity is responsible for the development phase.

The second speculative development is located in Brebieres, comprising a 69,134 m2 warehouse with practical completion due by Q4 2020. Goodman is the developer.

In a third French transaction, CG has acquired an 18,857 m2 warehouse from Amundi Real Estate, for €11.5 mln, in Gevrey-Chambertin, close to Dijon. It is let on separate long leases to Gealan, a window manufacturer, and global manufacturer Jtekt Automotive.

Alistair Calvert, CEO of Clarion Gramercy, commented: 'These are highly attractive development opportunities in core European logistics locations that meet our strict and disciplined investment criteria.

'France is an increasingly attractive market and focus for the Clarion Gramercy team, as e-commerce penetration increases at a faster pace than in many other Western Europe markets and new supply struggles to keep up with growing demand.'

In April 2019, US-based Clarion Partners announced the acquisition of a majority stake in Gramercy Europe.

For Reau, Clarion Garmercy was advised commercially by BNP Paribas and legally by Herbert Smith Freehills. For the transactions in Brebieres and Dijon, Clarion Gramercy was advised legally by Herbert Smith Freehills.

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