KKR and Etche, KKR’s logistics real estate platform in France, have announced the acquisition of the Scott logistics portfolio from Ivanhoé Cambridge for an undisclosed amount.
The transaction, comprising five buildings with a total area exceeding 160,000 m2, is KKR’s first in France via its Core+ real estate strategy, and fourth for the strategy in Europe this year following UK, Finland and Sweden acquisitions.
CA-CIB provided funding for the operation through a structured financing arrangement in the form of a green loan.
The assets, two of which have just been completed, are located in prime logistics zones in the ‘Dorsale’ on the outskirts of Lyon, Grenoble, Orléans, Compiègne and Strasbourg. The buildings are fully occupied by quality anchor tenants on long-term leases.
'The acquisition of this portfolio is a clear demonstration of our ability to swiftly execute significant deals in a challenging market environment, thanks in large part to the reinforcement of our teams with Joffrey Houdoux (Investment Manager) and Julien Chevrier (Chief Administrative and Financial Officer) who joined the firm this year. This strategic portfolio combines strong fundamentals and significant potential for value appreciation, which will allow us to navigate the current period with confidence. It serves as an excellent foundation upon which we can soon aggregate new buildings of similar quality,' said Vincent Lauret, president of Etche.
'This first acquisition through our Core+ strategy in France reflects our desire to acquire a quality portfolio for the long term, particularly in the logistics sector. We expect that the sector fundamentals will continue to be very positive for the years to come, particularly given the lack of future supply in France, which should continue to benefit owners of existing, quality assets,' commented Mai-Lan de Marcilly, managing director and head of transactions France & Hotels at KKR.
The Etche platform currently owns and operates a portfolio of over fifty logistics and light industrial properties across the country.