Savills IM deploys €175 million with acquisition of two logistics assets on behalf of VESALF I
16 February 2022
Savills Investment Management (‘Savills IM’) the international real estate investment manager, today announces the acquisition of two logistics assets in France and the UK on behalf of its Vestas European Strategic Allocation Logistics Fund (‘VESALF I’ or ‘the Fund’), for a combined €175 million.
Located on Mercia Park, Tamworth UK, the first acquisition constitutes a sale and leaseback of DSV’s midlands headquarters. The asset is made up of a c.420,000 sq ft warehouse building, a c.120,000 sq ft cross dock facility and a regional c.35,000 sq ft HQ office building.
VESALF I signed the forward commitment to acquire the property in March 2021 and has now closed the deal upon completion of construction. DSV has taken a 10-year lease over the buildings, which benefit from BREEAM ‘Very Good’ ratings.
The second acquisition comprises two recently developed warehouses near Lille, one of the biggest French logistics locations. The buildings are leased to Renault and Fedrus on long-term commitments.
Savills IM were advised by De Pardieu, Brocas & Maffei (legal); Savills (technical and environmental) and BNP Paribas (commercial) on the French transaction. And by Ashurst (legal), Arcadis (technical) and CBRE (commercial) on the Tamworth acquisition. Aareal financed both transactions having already financed another asset in the VESALF I portfolio.
Alistair Ennever, Head of Industrial & Logistics – Europe, Savills Investment Management, commented:
We are delighted to have worked closely with Vestas to invest a significant proportion of the equity raised for VESALF I in these high quality assets. The market continues to be very competitive and we are pleased to have been able to further diversify the Fund with exposure to the French and UK markets with these acquisitions. We look forward to continuing our work with Vestas and executing a pipeline of transactions in the coming months.
Salvatore Lee, Managing Director, Vestas Investment Management, commented:
We are very grateful to the Savills IM team for their diligent work to complete two core logistics deals in the pandemic era. We are very pleased to add these core countries enhancing the diversification and stability of the whole portfolio. As the European logistics market is set to continue its positive trajectory, we will be maintaining our allocation to this dynamic sector.
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"We are delighted to have worked closely with Vestas to invest a significant proportion of the equity raised for VESALF I in these high quality assets."