Barings divests last-mile logistics asset in France to ESR Europe

Barings has sold a 22,582 m² last-mile logistics property in Savigny-le-Temple, France, to ESR Europe, which acquired it for its value-add fund for an undisclosed price.

Savigny-le-Temple

The sale was made on behalf of PELV, a pan-European logistics joint venture between a U.S. insurance company and a Middle Eastern sovereign wealth fund targeting core-plus/value-add assets, managed by Barings.
Built in 2004, the warehouse was purchased by Barings in 2018 as part of a two-asset logistics portfolio. It meets Grade A logistics standards and is located in an industrial park with over 300,000 m² of logistics space spread across 268 hectares. The facility includes a clear height of 12.35 meters, 23 dock doors, a 35-meter maneuvering yard, and multiple operating licenses.
The asset will undergo a repositioning project with a focus on ESG improvements by ESR Europe.
This off-market transaction, made on behalf of ESR Europe's Active Fund V, marks the fifth addition to Project Jasmine, ESR's French urban logistics initiative launched in 2023.
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-plus assets and the strength of our local execution capabilities. The logistics market in France remains an attractive one for Barings given the sector's fundamentals, and we're continuing to explore opportunities in logistics as well as our other preferred sectors of residential and prime offices in city-center 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-plus 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."
Quentin Kerrault, head of Investment at ESR Europe, said: "We are delighted to add the Savigny asset into our value-add 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."
The property's prime location along France's major Lille-to-Marseille logistics route, the "logistics backbone," provides excellent access to Paris (approximately 40 million people) via the A5 and A6 highways and Orly Airport (30 km).
Barings received guidance from Oudot, DLA Piper, and CoStrategic during the transaction. ESR Europe's advisors included EOL, Le Breton, Racine, Andine, and IREO.