Arlington prepares to launch new €500 million fund (UK)

Arlington Securities has announced the acquisition of two logistics parks in France for a total initial price of €55.7 million. The acquisition represents the initial assets for a major new pan-European Logistics Fund anticipated to launch in late 2006.

With a minimum Gross Asset Value of €500 million, the Arlington European Logistics Fund will invest directly in logistics and distribution warehouse properties in the main Eurozone countries and the core Central European countries. The Fund will target acquisitions with an initial yield range of 6.25%-8.50% and a minimum lot size of €10 million.

Arlington was acquired by Macquarie Goodman Group in December 2005. The acquisitions will be held on Macquarie Goodman Groups balance sheet until the fund launches. Rob Wilkinson, Managing Director of Business Development for Arlington said: Working as part of Macquarie Goodman Group means we are now in a position to invest quickly in a whole range of assets across Europe. The new fund is just one of many exciting developments and deals we are currently working on. This further demonstrates our stated objectives of substantial growth across Europe.

The fund is a follow up to the hugely successful CLOGIX fund which was Arlingtons first European logistics vehicle, which has a Gross Asset Value of €397 million and is fully committed and invested. Greg Goodman, Chief Executive Officer of Macquarie Goodman Group said: "We are delighted to already be making an impact in the European market. The two logistics parks acquired by Arlington on our behalf represent just the sort of value added investments that we are looking for. We have been extremely impressed by their expertise in this market, proven with the success of their existing funds."

Details of the acquisitions are as follows:

Montelimar, Lyon, France
The 61,404 m² logistics/warehouse development in Montelimar, Lyon in the Rhone Valley towards the South of France has been acquired for €41 million from Geprim-Nexity, a major French construction and property development company. It consists of two separate buildings and 50% of one building has been pre-let to Casino Easydis, a subsidiary of the major supermarket chain, Casino, on a 9-year lease. The remaining space is subject to a 9-month rent guarantee from the developer. Etude Monassier undertook legal due diligence on behalf of Arlington.

Wattrelos, Lille, France
The 26,389 m² logistics/warehouse development in Lille, France, close to the Belgian border has been acquired for €14.6 million from SPIE Batignolle Immobilier, the fourth largest construction and development company in France. The acquisition is subject to a minimum of 60% of the development being pre-leased. The property will consist of approximately 27,000 m², constructed to international specifications on 60,000 m² closed land. Lefevre Pelletier has conducted all negotiations on behalf of Arlington.

Source: Arlington Securities

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