Schroder European Real Estate Investment Trust, which invests in European growth cities, said yesterday that it would buy a logistics property in Nantes, western France, for €6.15 million (about R100m).
The 8 663 square metre warehouse was let to Hachette Livre, a subsidiary of leading French media group Lagardère, with an unexpired lease term of 7 years. The asset was located in one of France’s fastest growing regions from a GDP and population perspective, Schroder said in a statement.
The facility was a strategic distribution hub for Hachette Livre, serving a population of some 13 million people across Brittany, Pays de la Loire and Nouvelle-Aquitaine.
Schroder REIM France head of investment Laurent Dubos said they had been seeking to diversify the company’s portfolio by both number of assets and tenants, as well as increase its allocation to the higher growth industrial sector.
“This acquisition achieves these objectives, increasing the portfolio’s industrial weighting from 20 percent to 22 percent, while deploying a portion of the proceeds from the recent sale of Boulogne Billancourt,” said Dubos.
The asset’s location was one of the most desirable logistics locations in Nantes.
“Given local supply constraints, it is an area where we expect to see strong rental growth,” he said.