Savills Investment Management has acquired a newly constructed prime Grade A distribution centre in Greater Paris, France, for €83.8 mln on behalf of its European Logistics Fund 3 (ELF 3).
The property was acquired from Barings, on behalf of institutional investors, and is located in Réau on the outskirts of Paris. Comprising 67,000 m2 of rental space, it is fully leased to two logistics service providers on long-term agreements.
The deal marks the first acquisition for Savills IM's newly launched ELF 3 fund.
Daniel Hohenthanner MRICS, director of investment at Savills IM, said: 'We are delighted that we could secure as a first investment for our new logistics fund this Grade A distribution centre in one of the largest metropolitan regions in Europe.
'A second transaction for this fund in Wroclaw has already been signed and is expected to be transferred to the fund in January. As a result, more than 40% of the current capital commitments would be invested shortly after fund launch.'
ELF 3 is an open-ended German property specialty fund that invests in prime logistics assets in Europe, with a focus on core/core-plus opportunities. The strategy seeks diversification in terms of geography and different occupier segments, including industry, trade and services.
Barings acquired the property in November 2018 upon completion of construction, on behalf of institutional investors, successfully letting the remaining space during summer 2019. The property has achieved a Breeam ‘Very Good’ rating.
As well as the imminent Wroclaw deal, with an investment volume of approximately €33 mln, ELF 3 is also in advanced negotiations on two distribution centres in the Netherlands worth a combined €75 mln.
Savills IM’s predecessor fund, ELF 2, was closed to new investors at the beginning of 2019. ELF 2 raised €560 mln in equity commitments – more than twice the targeted amount of €250 mln. ELF 2 is nearly fully invested, with only €40 mln equity remaining.
This is the second transaction for Savills IM with Barings in France, following the deal for a logistics asset in Le Coudray-Montceaux on the outskirts of Paris in April 2019.
Savills IM was advised by Jones Lang Lasalle, Wargny Katz, Gide Loyrette Nouel and Savills.
Barings was advised by Oudot & Associés.