ESR Europe has acquired a 22,000 sqm last-mile logistics facility near Paris. Seller is Barings, acting on behalf of its value-add discretionary fund ARA Europe Active Real Estate Fund V. The grade A asset becomes part of Project Jasmine, expanding the firm’s urban logistics footprint in France. A major repositioning and ESG upgrade are planned. Both parties agreed not to disclose financial information.
.
The acquisition was completed on behalf of ESR Europe’s Active Fund V and marks the fifth property added to Project Jasmine, the firm’s French urban logistics aggregation initiative launched in 2023. The asset was acquired in an off-market transaction from an institutional investor, with debt financing secured concurrently from a French senior lender.
Located within one of France’s largest industrial hubs, the Savigny facility will be repositioned to attract long-term occupiers and future investors. The comprehensive business plan includes a substantial capex programme to upgrade the property to modern standards, incorporating multiple ESG features, and to re-let the space.
„We are delighted to add the Savigny asset into our value-add last-mile portfolio in France. Our investment thesis centers around large, established conurbations and, by leveraging the e-commerce boom and creating high-quality facilities, we’ve maintained high occupancy and rental growth in our assets. Another key aspect of our approach in France has been the aggregation of assets to create value. By building a diversified portfolio, we not only mitigate risk but also enhance the price premium of its holdings“, says Quentin Kerrault, Head of Investment at ESR Europe.
The investment builds on the success of an ESR Europe-managed specialist UK last-mile logistics vehicle with €220 million in AUM. ESR Europe’s French logistics portfolio now totals 220,000 sqm and more than 20 tenants, generating a total income of 10 million Euro per annum. The team remains active in the European market, continuing to deploy capital into value-add opportunities.
Guillaume Bieganski, Managing Director and Country Head France at Barings Real Estate, said: “Savigny-le-Temple is a high-quality asset in one of France’s most dynamic logistics markets, and its successful sale reflects both investor appetite for core+ assets and the strength of our local execution capabilities. The logistics market in France remains an attractive one for Barings given the fundamentals of the sector, and we’re continuing to explore opportunities in logistics as well as our other preferred sectors of residential and prime offices in city centre locations.”
Rob Fairfax, Director and Portfolio Manager for PELV, said: “This latest disposal on behalf of PELV demonstrates the strength of our asset management proposition amid changing economic conditions. With Barings’ approach of combining on-the-ground expertise with global insights, we’re well placed to continue to look for further opportunities on the buy-side targeting Core+ industrial and logistics assets – particularly existing under-rented assets with short term reversionary potential – in our target jurisdictions, which are France, the UK, Nordics, Spain, Germany, Italy and the Netherlands.”
Read more international topics!