Platform agrees to forward fund five light industrial schemes in key regional locations
Europa Capital, the pan-European real estate investment manager, in partnership with DeA Capital Real Estate France, announces the launch of the French Light Industrial Platform (the “Platform”) on behalf of its value-add fund, Europa Fund VI with a strong commitment on ESG framework and sustainable properties.
The Platform, which has a target GAV above €100 million, has agreed to forward fund the speculative development of five modern light industrial projects through a transaction with established sector developer Axtom.
The seed portfolio will comprise c. 28,400 sq m of new, high-quality space located across Wattrelos (Lille), Colombier (Lyon), Epernon (Chartres), Brignoles (Marseille) and Saint-Herblain (Nantes).
Currently under construction, the schemes are expected to be delivered between Q4 2022 and 2023 and have been financed through the provision of a green loan from HSBC Continental Europe, with all the assets expected to achieve BREEAM Very Good certification through the use of high-performance building materials and renewable energy sources. The loan also benefits from a dedicated ‘Green Framework’, which Ethifinance, an ESG rating agency, has independently verified.
Europa Capital has a long track record of generating attractive returns for investors through investment into the urban light industrial and logistics sector on behalf of its value add and core strategies. In total, Europa Capital has acquired 93 buildings in the sector for a total of €674 million since 2018.
This latest investment increases the size of Europa Capital’s current portfolio of light industrial and logistics assets to c. 815,000 sq m across a diverse range of geographies including the UK, France, Germany, the Netherlands, Czech Republic, Hungary and Poland.
Jason Oram, Partner & Fund Manager at Europa Capital, commented: “The launch of the French Light Industrial Platform builds on our existing presence in France, whilst also following our strategy of forming country-specific platforms of scale in the light industrial and logistics space. Demand for light industrial space situated close to urban areas continues to outstrip supply and we expect these near-term developments to present an attractive offering to prospective occupiers.”
Jonathan Mansie, Managing Director, Origination & Acquisitions at Europa Capital, added: “Within a short period of time we have assembled a high-quality portfolio of new development projects in established commercial areas in and around a number of key regional French cities. Importantly, these properties will be built to market-leading standards with a strong focus on sustainability. There is a compelling shortage of new light industrial stock in our target markets, and we look forward to working closely with our joint-venture partner, DeA Capital. Forward funding yields for speculative light industrial developments currently provide an attractive margin over those for fully stabilised assets, and we continue to seek further opportunities in this sector.”
Emanuele Dubini, CEO at DeA Capital RE France, underlined: “We are delighted to continue strengthening our relationship with Europa Capital with this new platform. We have seen strong value proposition in this asset class. The team has been actively working to source deals from well-known developers and delivered a solid and reliable partnership. We look forward to continue working with them and generating future opportunities.”
Pierre Julin, Managing Director at DeA Capital RE France added: “We are already focusing on scaling up the platform with other assets to be aggregated in the coming months and in the meantime leveraging on the deep expertise of our AM team to implement our leasing and ESG strategy.”
Europa Capital and DeA Capital Real Estate France were advised by Lasaygues, Mayer Brown, PwC, Enoma and Theop.