EQT Real Estate Expands Its Logistics Footprint in Southern France with Major Acquisition

EQT Real Estate Acquires Prime Logistics Portfolio in Southern France

EQT Real Estate recently announced its strategic acquisition of a significant logistics portfolio consisting of five warehouses located in Southern France. This acquisition is set to enhance EQT's footprint in the core logistics markets of Southeast and Southwest France and is part of EQT Exeter Logistics Value Fund IV's ongoing growth strategy.

Overview of the Acquisition

The newly acquired logistics portfolio spans approximately 148,000 square meters and includes properties situated in the strategic submarkets of Avignon and Toulouse. These locations are particularly attractive due to their proximity to key transportation routes, notably major motorways such as the A20 and A7, which provide essential connectivity to bustling urban centers like Marseille and Lyon.

Each warehouse in the portfolio boasts Grade A technical specifications with an average eaves height exceeding ten meters. This feature, along with ample loading docks and maneuvering space, positions the properties as optimal solutions tailored to meet the demands of contemporary logistics operators. Furthermore, the warehouse facilities are leased to nine different tenants, all of which contribute to a diversified and stable income stream for EQT Real Estate.

A Focus on Demand-Driven Markets

The acquisition comes at a critical time, as the logistics sector in Southern France experiences persistent resilience and a strong demand due to its essential role in the supply chain across the Atlantic and Mediterranean coastlines. The core markets targeted by EQT Real Estate are characterized by a structural undersupply of logistics space, further accentuating the appeal of this acquisition.

Strategic Commentary

John Toukatly, Partner and Chief Investment Officer for European Logistics at EQT Real Estate, expressed enthusiasm about the acquisition, stating that the properties are highly desirable and strategically located within supply-constrained markets. He emphasized the importance of aligning with EQT’s strategy to invest in modern, high-potential logistics properties in areas marked by undersupply. "We believe our operational expertise and asset management capabilities will significantly increase the value of this high-quality portfolio," he noted.

Advisors and Strategic Partners

EQT Real Estate received expert advisory support for this transaction from a host of renowned firms. PwC provided financial and tax advice, while Gide and GMH Notaires were responsible for legal and notarial services. CBRE represented commercial support, Tauw addressed environmental aspects, and AMF looked after ICPE and PM consultations. Additionally, Gleeds contributed with technical and ESG guidance, ensuring a comprehensive evaluation of the assets involved.

Conclusion

The acquisition of these five logistics buildings marks a significant milestone for EQT Real Estate, allowing them to not only enhance their existing portfolio but also to cater to a demanding and evolving market. With the integration of these high-quality properties and a solid tenant base, EQT Real Estate is well-positioned to leverage the growing logistics demands in Southern France, ultimately benefiting their investment strategy and projecting future growth.