Valor Real Estate Partners has acquired a prime urban warehouse in Paris for €26 million from a private vendor.
The c. 15,000 sqm property, which is in the attractive submarket of Garges-lès-Gonesse, north Paris, is within 10km of the 1st Paris ring-road and offers excellent connectivity to the national road network via the nearby A1 and A86.
The area is characterised by a shortage of modern warehouse space, with future supply set to be constrained by the allocation of land for residential development, according to Valor.
Valor plans to undertake a full refurbishment of the unit to deliver high-specification distribution space suitable for occupiers in the e-commerce and logistics sectors. The asset sits on a 26,000 sqm site and provides a 33m yard space, providing excellent accessibility and parking provision.
The transaction is the first Valor has completed in Paris on behalf of its €1 billion specialist urban logistics investment vehicle, the company said. Launched in November 2020, it will deploy up to €1 billion in leading cities across UK, France and Germany, across the full risk spectrum of stabilised assets, vacant or short-income assets and ground-up development.
To date, Valor has deployed or committed a total of over €365 million on behalf of the vehicle.
Ben Brunschwig, Senior Vice President at Valor, commented: “This is a significant acquisition in a highly-competitive and illiquid sub-market, where there is a shortage of modern distribution space and the majority of assets are in private ownership. The unit offers scale in a dense urban location, and excellent connectivity to central Paris and the wider road network, making it ideally suited for refurbishment as high-specification and environmentally-efficient distribution space.”