Gramercy Europe, acting on behalf of its fund Gramercy Property Europe III, has acquired, in separate transactions, two warehouses in Lyon and Rouen, France, for €37m, reflecting attractive yields. Both deals sit firmly in the company’s investment strategy sweet spot; Lyon is a fast-growing logistics hub forecast to see above-average rental growth; whilst Rouen reflects Gramercy’s focus on assets that are critical to the tenant’s operations and close to significant population centres.
In Lyon, Gramercy has purchased a modern, purpose built, 22,567m² logistics facility, developed in 2012. The purchase price is €22m. As part of the sale and leaseback, Gramercy has secured a leading 3PL provider on a new eleven year, double net lease.
The company has also acquired a 16,568m² warehouse in Rouen, Normandy, from Groupe Financier JC Parinaud, for €15m. The asset is let to one of France’s largest postal service companies, the government-owned La Poste. Constructed as a postal sorting facility, it functions as La Poste’s regional headquarters and main sorting and distribution centre for the post and small parcels. This small parcel business line is expanding rapidly and is directly correlated to growing e-commerce penetration in France.
Alistair Calvert, CEO of Gramercy Europe, commented: “Occupier demand for modern logistics space continues to outstrip supply, underpinning significant rental growth and whilst e-commerce penetration in France is currently lower than other major Western European economies, we expect it to catch up in the medium term, which is why we have such a high exposure for our latest fund in this market.”
