Europa Capital completes two logistics transactions for European core fund

Europa Capital completes two logistics transactions for Europan core fund

Europa Capital has completed two separate transactions, which comprise the acquisition of a 46,758 sq m logistics facility in Nantes, France, from DTZ Investors Logistics Development Fund I, a vehicle advised by DTZ Investors, and the sale of a 12,171 sq m logistics asset in Eindhoven, Netherlands.

The transactions have been completed on behalf of the Europa Diversified Income Fund (EDIF).

Situated in Grandchamps-des-Fontaines near Nantes, the newly constructed logistics facility occupies a prime distribution location with supply constrained dynamics.

The asset is fully let on a long lease to Lidl, Europe’s largest supermarket group, with plans to further improve the property’s sustainability credentials.

Warehouses now represent 42% of EDIF with logistics assets in France, Germany and across the Netherlands.

EDIF has a GAV of c. € 530 million, with over two thirds of the portfolio in the logistics and residential sectors where Europe’s rental growth prospects are strongest. Through leveraging Europa Capital’s track-record in delivering value-add income growth, EDIF aims to provide long-term outperformance of market benchmarks, for which ESG considerations are a key performance metric.

For the Nantes acquisition, Europa Capital was advised by Alpha Logistics Real Estate, who will remain the asset manager.

Andy Watson, Partner, Fund Manager of EDIF at Europa Capital, commented: “Nantes is a city which we favour for its strong fundamentals of population growth and this Grade A logistics asset provides an excellent addition to the Fund, with a high calibre occupier with a really strong covenant. Within the Fund’s logistics portfolio, asset management prospects remain strong for both income growth and releasing embedded value by capturing reversions and realising extensions on land owned by the Fund.” 

Chris Cooper, CEO of DTZ Investors, added: “We launched the Logistics Development Fund in 2017 to capitalize on the profound changes in the European logistics market, particularly in the XXXL sector. We identified Nantes as an important growth area outside of the traditional “Dorsale” corridor of France and were delighted to collaborate with Lidl to create a key hub for them in the Atlantic coast region. We are delighted Europa shares our conviction in this market, allowing us to recycle capital in the fund.”