Ontario Teachers’ Pension Plan and Boreal IM Joint Venture Acquires 165K SQM Prime Logistics Portfolio in Strategic French Markets

Posted on 01/30/2024

Revealed on January 24, 2023, The Ontario Teachers’ Pension Plan and Boreal IM joint venture made an acquisition in the French logistics market. The deal is a 165,000 sqm portfolio of five, fully-let, logistics assets. The transaction marks the JV’s second investment in France, after the acquisition of a standing asset and development plot in Paris in 2023.

The assets are located in Lyon, Nantes, and Lille – core cities within the French logistics “Backbone” and “Atlantic Corridor” where there is a structural undersupply of logistics assets and limited potential to develop additional space. These investments align with the JV’s strategy of targeting assets in supply-constrained locations where occupier demand remains strong, and where there is the potential to improve rental levels in the mid-term.

The assets consist of:
Belleville: A 50,000 sqm asset north of Lyon, constructed in 2010, and fully leased to a pharmaceutical company as its main national logistics centre

Étoile sur Rhône: A 35,000 sqm facility built in 2018 located south of Lyon and leased to two French 3PLs fulfilling national and international contracts

Nantes: A 19,000 sqm, part temperature-controlled asset, fully let to a local 3PL which uses the asset to fulfil contracts for clients located in northwest France

Angers: Built in 2018, this 42,000 sqm asset is leased to a global contract logistics provider to serve central and western France

Lille: An 18,000 sqm facility located in Lille’s most established logistics cluster. Built in 2018 and fully leased to an international 3PL which has consolidated its regional operations in the asset

All of the assets benefit from easy access to the main highways, including the A6 which connects Marseille to Lyon and Paris (Belleville, Étoile sur Rhône); the A1 connecting Lille to Paris (Lille); and the A11 that runs from Nantes to Paris (Angers, Nantes).

Boreal and Ontario Teachers’ Pension Plan were advised by Clifford Chance, NOTER, CBRE, Etyo and PwC.

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