A joint venture between Boreal IM and Cadillac Fairview has purchased logistics assets in Barcelona, Spain and in Paris, France for €70 million.
The joint venture acquired two warehouses and developable land in Barcelona’s third ring, Girona, and a 17 ha site, which includes a 42,600 sq.m (459,000 sq.ft) existing warehouse and development land on the outskirts of Paris.
Purchased off-market, the warehouses in Girona total 26,250 sq.m (282,550 sq.ft) with a further 24,000 sq.m (258,330 sq.ft) of developable land which can yield up to 16,000 sq.m (172,220 sq.ft) of additional space. The site is in proximity to the AP-7 motorway, connecting Barcelona to France as well as Valencia to Malaga along the Mediterranean corridor.
The buildings are fully occupied by TradeINN, an online sportswear retailer that has been at the site since 2014 and recently signed a 10-year lease. Built in 2004, the BREEAM-certified warehouses underwent extensive refurbishment in 2021 when TradeINN invested over €7m to make it its global distribution hub.
While the warehouses are secured on a long lease, a priority for Boreal IM will be to implement the JV’s ESG strategy, which leverages technology to measure and benchmark the carbon footprint of each property and upgrade its design and energy systems. It will also establish tenant engagement programmes and implement green leases where possible. Across these assets, the initial focus will be to raise the EPC rating and building certifications as well as install solar panels later this year.
In France, the JV has acquired a fully let logistics site north of Paris from an American multinational manufacturer and distributor via a sale and leaseback transaction. The site, totalling 170,000 sq.m (1,830,000 sq.ft), comprises a 42,600 sq.m (459,000 sq.ft) logistics warehouse and c. 7 ha of development land, and is part of a consolidated industrial estate which counts Geodis and Chronopost as occupiers and Prologis and Mileway as owners. The location provides access to the wider Paris region, Roissy (Charles de Gaulle) Airport and to Paris city centre within 45 minutes.
The JV intends to work closely with the tenant to improve the existing warehouse, with a focus on ESG upgrades that include LED lighting, PV panels and other energy-saving measures. A state-of-the-art facility with top ESG credentials is planned for the development site.
Jenny Hammarlund, Head of Europe and Managing Director at Cadillac Fairview, said: “Cadillac Fairview is thrilled to be expanding into the continent, specifically the much sought-after Barcelona and Paris regions, with our partner Boreal. This deal demonstrates the overall momentum of our joint venture, which was only formed a short time ago. Together, through our shared vision and commitment to excellence, we are building a resilient pan-European portfolio that puts ESG at the heart of all we do.”