Property investment manager Barings is to forward fund the speculative development of a 50,409 sq m logistics asset near Béziers, France.
The off-market deal has been struck on behalf of joint venture between a US insurer and a Middle Eastern sovereign wealth fund targeting pan-European core-plus and value-add logistics assets. The purchase price has not been disclosed.
The asset will provide 48,575 sq m of warehousing and 1, 834 sq m of offices and is due for completion in Q4 2022. It is located along the A9 motorway in the south of France, a logistics corridor that runs east to west and towards Spain.
“This off-market transaction in the supply-constrained south-east of France was an attractive opportunity to extend our French logistics asset base – which currently comprises 200,000 sq m of space across seven assets,” said Barings director, asset management and transactions, Guillaume Bieganski.
“Not only does the area have very limited vacant stock and increasing occupier demand, but there is almost no land available on which to develop new supply.”
The transaction is Barings’ fifth on behalf of the JV strategy and its third in France. Barings is also targeting Germany, France, the UK, Italy, Spain, the Netherlands and the Nordics on the joint venture’s behalf.