PGIM Real Estate and Paris-based property management company Alderan have formed a partnership to acquire and manage logistics assets in key locations in France.
As part of the deal, PGIM Real Estate’s pan-European core-plus investment strategy has acquired 90% of the shares of OPPCI Organa III, a fund that Alderan launched in 2018 and which holds a portfolio of eight logistics and business assets in locations including the Paris and Madrid regions.
Ojirel Group, the initial sponsor of Organa III, will hold the remaining 10% of the fund’s shares. Alderan will continue to manage the vehicle, with the aim of growing the portfolio and its income.
At the end of 2020, the portfolio, which has a total area of 156,000 sq m, was 90% occupied and had a rent roll of €6.9 million. Notable assets include a facility in Saint Quentin-Fallavier, in the Lyon region, which is leased to a large national retailer. It also owns a warehouse being developed in Fontenoy-sur-Moselle near Nancy, 60% of which is pre-leased to Viapost and Pomona.
PGIM Real Estate aims to enhance the value of the portfolio by consolidating the rental exposure while taking advantage of opportunities for value creation. Several assets have significant redevelopment potential, particularly in the Île de France and Marseille.
Jocelyn de Verdelon, president of PGIM Real Estate France, said: “The acquisition of Organa III fits perfectly with PGIM Real Estate’s logistics strategy in France. The peri-urban locations of the portfolio provide a high intrinsic value and the technical characteristics of the assets are good and easily adaptable.”
He added that Organa III will also acquire existing platforms and develop new assets in order to create an investment platform with critical mass.