Valor Real Estate Partners has acquired four urban infill properties, located in prime Paris submarkets, for a total consideration of €30m. The mix of tenanted and vacant units are strategically located in critically undersupplied submarkets where businesses are seeking logistics space to service Paris’ inhabitants.
In Arcueil, 2km south of Paris city centre, Valor has acquired a 3,500m² urban logistics warehouse which is c. 90% let to Cityscoot and Lime, two fast-growing e-scooter businesses. The property is suitable for a wide range of tenants and is located in a primarily residential and office dominated neighbourhood less than 10 minutes from the centre of Paris, and just 2km from the A6 motorway, the main arterial route connecting Paris and Lyon.
In a second transaction, Valor has completed the purchase of two infill properties, totalling 6,300m², in Bezons, 10km west of Paris. The first property, totalling 2,700 sqm, is currently vacant and will be entirely refurbished, whilst the second, totalling 3,600m², is let to packaging company BBA Emballages on a ten-year term. The properties have a significant residual value and benefit from their proximity to the affluent western Paris suburbs and adjacency to the A86, Paris’ second inner ring road.
In a third transaction, Valor has acquired a high-quality, vacant 5,500m² urban logistics warehouse in La Courneuve, 6km north of Paris, from a private investor. The business plan is to improve flexibility by splitting the asset into two units suitable for a wider range of businesses, in a market suffering from a lack of available high-quality product. La Courneuve is located immediately west of Le Bourget, where Valor is speculatively developing a landmark 28,000m² urban distribution park.
Ben Brunschwig, Senior Vice President, Valor REP, commented: “These properties are all located in critically undersupplied infill sub-markets on the edge of Paris, and provide excellent connectivity by road enabling tenants to reach a significant proportion of the city’s population in a short space of time. In line with our proven strategy, all the assets are in locations dominated by higher-value real estate use classes, and offer a mixture of strong day one income and the opportunity to drive both rental and capital growth via a mix of near term leasing events and either refurbishment and redevelopment.”
