Boreal IM and Cadillac Fairview JV deploys €250M in debut European logistics deals

Boreal IM and Cadillac Fairview JV deploys €250M in debut European logistics deals
  • The newly formed Boreal IM and Cadillac Fairview JV has acquired one industrial park in Park Royal, West London, UK, and another in the Port of Rotterdam, Netherlands
  • These two acquisitions are the first in the JV formed by Boreal IM and Cadillac Fairview, which will seek to assemble a €3 bn pan-European logistics portfolio
  • Boreal IM was set up this year by former TPG Real Estate, Blackstone and Europa Capital execs

The Boreal IM & Cadillac Fairview JV (the “JV”) has purchased the Nucleus Estate in Park Royal, West London and an estate within the Port of Rotterdam for a combined total of €250m.

The acquisitions comprise a total of 1.1m sq.ft (109,000 sq.m) of logistics space and mark the JV’s debut acquisitions since being formed in early 2022.

Cadillac Fairview, the real estate arm of Ontario Teachers’ Pension Plan ($242bn AUM), which has actively been expanding into the UK and Europe in the last 18 months, earlier this year teamed up with Boreal IM, led by Louis-Simon Ferland, who oversaw the creation of Blackstone’s acquisition program in the European logistics sector. He was responsible for the formation of Logicor, from a start-up to a €12.5bn pan-European logistics and last mile focused JV platform. The Boreal IM and Cadillac Fairview JV will focus on major European geographies including the UK, Germany, France, Netherlands, Spain and Italy and can invest right across the risk spectrum to include standing assets and ground up development.

In London, the JV has acquired Nucleus, an estate of four warehouses in Park Royal from fund manager abrdn. Park Royal is strategically located between London Heathrow Airport and the capital and is London’s premier industrial estate, home to more than 1,700 businesses. Constructed between 1999 and 2003, the assets comprise a total of 131,000 sq.ft (12,000 sq.m) and are fully leased to a diverse range of occupiers including DPD.

In Rotterdam, the JV has acquired an estate of six warehouses in the heart of the Port of Rotterdam, Europe’s largest seaport. The warehouses – constructed in 2006 – comprise a total of >1m sq.ft (97,000 sq.m) and are fully leased to a range of occupiers involved in port-led distribution activities.

As part of a planned forward looking ESG strategy, the JV will be harnessing technology to measure and benchmark the carbon footprint of every asset, and will also look to upgrade the designs and energy systems of its assets.

Louis-Simon Ferland, founder and partner at Boreal IM said: “The acquisition of these assets marks the first step in our mandate with Cadillac Fairview. We will be focusing on assets across core European locations where fundamentals support outsized demand for logistics assets. Both of these acquisitions have been driven by our focus on making thematic investments by closely analysing macroeconomic trends and identifying paradigm shifts. Our aim is to drive long-term returns for our investor and both of these deals have in place the right characteristics to deliver this.”

Jenny Hammarlund, head of Europe and managing director at Cadillac Fairview said: “Cadillac Fairview is focused on expanding its global real estate holdings and Europe is a key part of this. Our partnership with Boreal enables us to team up with a best-in-class group of professionals with highly relevant experience, to build up a significant exposure to the European logistics and last-mile sectors, which continue to have good underlying fundamentals underpinned by strong demand for best-in-class ESG driven assets.  We look forward to working closely with Boreal to continue to grow this strategy over the coming years.”