- Boreal IM & Cadillac Fairview JV acquires logistics assets in Barcelona, Spain and in Paris, France for c. €70m
- JV now has exposure to four of its six target markets, following previous acquisitions in the UK and Netherlands
- Boreal IM has established a local presence in Paris, where acquisitions and asset management professionals are based
The Boreal IM & Cadillac Fairview JV (the “JV”) has expanded into Spain and France with two acquisitions totalling c. €70m. Two warehouses and developable land have been acquired in Barcelona’s third ring, Girona, while a 17 ha site, which includes a 42,600 sq.m (459,000 sq.ft) existing warehouse and development land, has been acquired on the outskirts of Paris.
Acquisitions Vice President Xavier Aubrun and Head of Asset Management Sebastian Hansen are based in Paris, the first members of the 18-strong firm in Continental Europe. Boreal IM also plans to have a local presence in the Netherlands and other strategic locations in the near future, strengthening access to networks and off-market opportunities in its target geographies.
The JV has now completed acquisitions in four of its six target locations since its 2022 formation, having completed previous asset purchases in the UK and the Netherlands. Germany and Italy are its other target markets.
Purchased off-market, the warehouses in Girona total 26,250 sq.m (282,550 sq.ft) with a further 24,000 sq.m (258,330 sq.ft) of developable land which can yield up to 16,000 sq.m (172,220 sq.ft) of additional space. The site is in proximity to the AP-7 motorway, connecting Barcelona to France as well as Valencia to Malaga along the Mediterranean corridor.
The buildings are fully occupied by TradeINN, an online sportswear retailer that has been at the site since 2014 and recently signed a 10-year lease. Built in 2004, the BREEAM-certified warehouses underwent extensive refurbishment in 2021 when TradeINN invested over €7m to make it its global distribution hub.
While the warehouses are secured on a long lease, a priority for Boreal IM will be to implement the JV’s ESG strategy, which leverages technology to measure and benchmark the carbon footprint of each property and upgrade its design and energy systems. It will also establish tenant engagement programmes and implement green leases where possible. Across these assets, the initial focus will be to raise the EPC rating and building certifications as well as install solar panels later this year.
Nikos Koulouras, Partner at Boreal IM, said: “Spain is one of our target markets and we are very pleased to be expanding the reach of our pan-European portfolio to the Catalunya region, one of the strongest and most dynamic logistics markets on the continent. For retailers, the proximity to both Barcelona and France is attractive, especially given constraints on development in the south of France and Barcelona.
“The adjacent land will allow us to develop an additional 16,000 sq.m (172,220 sq.ft) which can either accommodate TradeINN’s expansion requirements or serve the strong occupier demand in the wider Barcelona market. We were attracted to the stable cash flow as well as potential upside offered by this opportunity.”
In France, the JV has acquired a fully let logistics site north of Paris from an American multinational manufacturer and distributor via a sale and leaseback transaction. The site, totalling 170,000 sq.m (1,830,000 sq.ft), comprises a 42,600 sq.m (459,000 sq.ft) logistics warehouse and c. 7 ha of development land, and is part of a consolidated industrial estate which counts Geodis and Chronopost as occupiers and Prologis and Mileway as owners. The location provides access to the wider Paris region, Roissy (Charles de Gaulle) Airport and to Paris city centre within 45 minutes.
The JV intends to work closely with the tenant to improve the existing warehouse, with a focus on ESG upgrades that include LED lighting, PV panels and other energy-saving measures. A state-of-the-art facility with top ESG credentials is planned for the development site.
Xavier Aubrun, Vice President at Boreal IM, commented: “Our acquisition programme in France has gotten off to a strong start with this Paris transaction. The investment offers a unique opportunity to benefit from a long-term tenancy with a S&P 100 multinational firmly established in the area, as well as the opportunity to develop a state-of-the-art and ESG-driven logistics park.
“Our local Paris presence will allow us to execute the business plan efficiently in the coming years. It will also enable us to pursue our investment programme across France, which represents an important part of the JV’s industrial strategy.”
Jenny Hammarlund, Head of Europe and Managing Director at Cadillac Fairview, said: “Cadillac Fairview is thrilled to be expanding into the continent, specifically the much sought-after Barcelona and Paris regions, with our partner Boreal. This deal demonstrates the overall momentum of our joint venture, which was only formed a short time ago. Together, through our shared vision and commitment to excellence, we are building a resilient pan-European portfolio that puts ESG at the heart of all we do.”
Boreal IM was advised by Dentons, Arcadis, PWC and Savills in Spain and DLA Piper, NOTER, Arcadis, Ateliers 4+, PWC and BNP in France.