ESR Europe, the European platform of ESR Group, has secured a 22,000 m² Grade A urban logistics facility in Savigny, 35 minutes south of Paris, as part of its Project Jasmine initiative. Acquired off-market from an institutional investor, the deal includes financing from a major French senior lender and brings ESR Europe’s French portfolio to 220,000 m² across more than 20 tenants.
This marks the fifth strategic addition to Project Jasmine, ESR’s French urban logistics aggregation platform launched in 2023. Located within one of France’s most prominent industrial corridors, the Savigny asset is poised for repositioning to meet rising last-mile logistics demand driven by sustained e-commerce growth and the ongoing reshoring of supply chains in Western Europe.
“We are delighted to add the Savigny asset into our value-add last-mile portfolio in France. Our investment thesis centres around large, established conurbations and, by leveraging the e-commerce boom and creating high-quality facilities, we’ve maintained high occupancy and rental growth in our assets. Another key aspect of our approach in France has been the aggregation of assets to create value. By building a diversified portfolio, we not only mitigate risk but also enhance the price premium of its holdings” said Quentin Kerrault, Head of Investment at ESR Europe.
A robust capex programme is now underway to upgrade the property to contemporary specifications with significant ESG enhancements. In addition to targeting re-letting opportunities, ESR aims for long-term tenant retention, boosting both yield resilience and exit value, which are critical considerations for institutional investors eyeing logistics real estate as a defensive asset class in a volatile macroeconomic climate.
One key differentiator for developers and capital partners: the Savigny acquisition supports ESR’s strategy to consolidate fragmented urban logistics sites into scalable investment-grade portfolios. This positions the firm to benefit from the illiquidity premium and exit multiples often associated with portfolio transactions, an aspect often overlooked in individual asset plays.
This latest acquisition builds on the €220m success of ESR Europe’s UK last-mile vehicle and reflects growing appetite for urban logistics with institutional-grade fundamentals. With €1.4bn in assets under management across the UK and Western Europe, ESR Europe continues to identify value-add opportunities in core logistics submarkets.
People mentioned:
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Quentin Kerrault, Head of Investment, ESR Europe
Companies mentioned:
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ESR Europe – European logistics and industrial real estate investment manager
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ESR Group – Global real estate investment manager headquartered in APAC
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