PATRIZIA sells French logistics portfolio to Blackstone for EUR 260m
PATRIZIA has completed the sale of a French logistics portfolio to real estate funds managed by Blackstone for a total consideration of EUR 260m in an off-market transaction.
- Portfolio of 10 logistics assets located on French logistics corridor totalling over 362,721 sqm
- Sale follows acquisition of EUR 44.2m French logistics asset in Amiens for TransEuropean VII
Augsburg/London, 3 October. PATRIZIA AG, the global partner for pan-European real estate investment, on behalf of TransEuropean Property Limited Partnership VI (“TEP VI” or “the Fund”) has completed the sale of a French logistics portfolio to real estate funds managed by Blackstone (“Blackstone”) for a total consideration of EUR 260m in an off-market transaction.
Comprising just over 362,721 sqm in ten properties, the portfolio was assembled off market as part of a strategy to aggregate high quality units along the highly prized logistics corridor. The portfolio is 100% leased to tenants including Kuehne and Nagel, Geodis, Rhenus, Honeywell and Amazon. Blackstone has engaged PATRIZIA to continue to manage the portfolio on its behalf.
This transaction mirrors the sale of a portfolio of seven French logistics assets totalling 302,675 sqm from TEP V to Blackstone for EUR 233m in 2017.
Paul Hampton, Head of International Funds at PATRIZIA, commented: “Credit must go to our transaction and local asset management teams for their hard work in assembling and stabilising this portfolio over the past three years and then securing the Fund’s exit. To be retained to work with Blackstone on the management plans going forward is clearly especially pleasing.”
PATRIZIA has also recently acquired two logistics warehouses situated on the border between Amiens and Poulainville, totalling 77,865 sqm, on behalf of TEP VII, the successor to TEP VI, bringing PATRIZIA’s AUM in France to EUR 1.34bn.
TEP VI, the sixth fund in PATRIZIA’s TransEuropean series, is a diversified, leveraged pan-European investment programme with a focus on office, retail, residential and industrial properties in large metropolitan areas of core Western Europe (including the UK). Launched in 2016, the strategy is to assemble a cash-flow generative portfolio that can be aggressively ‘managed to core’, utilising the firm’s Europe-wide platform and, more specifically, its hands-on asset management or operator-style approach. The programme can be classified as ‘value-add’ in terms of risk, albeit income is expected to be a key driver of the 15% pa target return.
PATRIZIA is currently in the final stages of marketing for TEP VII which launched in 2018 and is expected to have a total firepower of EUR 1.5 billion. TEP VII will pursue a cash-flow driven, value-add strategy primarily across the office, industrial and residential sectors in continental Europe and the UK. It favours an ‘operator style’ approach which draws on PATRIZIA’s local transaction and asset management expertise. Since the launch of TEP VII and its second close of EUR 250m in February 2019, eleven investments across Madrid, Paris, Barcelona and Berlin, totalling EUR 505m, have been either contracted or placed under exclusivity.
PATRIZIA AG has been active as an investment manager in the real estate market across Europe for more than 35 years. PATRIZIA’s activities include the acquisition, management, repositioning and sale of residential and commercial real estate through its own licensed investment platforms. As a global partner for pan-European real estate investment, PATRIZIA operates as a respected business partner of large institutional investors and retail investors in all major European countries. PATRIZIA manages more than EUR 41 billion of real estate assets, primarily as an investment manager for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks and as co-investor. For further information, please visit: www.patrizia.ag.
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