ESR Europe, the European platform of ESR Group, has acquired a last-mile 22,000 sqm grade A urban logistics facility situated 35 minutes south of Paris.
The acquisition has been completed on behalf of ESR Europe’s Active Fund V and marks the fifth property to be added to Project Jasmine, the firm’s French urban logistics aggregation initiative launched in 2023.
The asset was acquired in an off-market transaction from an institutional investor, with debt financing secured concurrently from a French senior lender.
Located within one of France’s largest industrial hubs, the Savigny facility will now be repositioned to attract long-term occupiers and future investors.
The comprehensive business plan involves a substantial capex programme to upgrade the property to the latest standards, including multiple ESG features, and to re-let the space.
Quentin Kerrault, Head of Investment at ESR Europe, says: “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.
Our investment thesis centres around large, established conurbations and, by leveraging the e-commerce boom and creating high-quality facilities...
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 ”
The investment builds on the success of an ESR Europe managed specialist UK last mile logistics vehicle with €220 million in AUM.
ESR Europe’s French logistics portfolio now totals 220,000 sqm and more than 20 tenants, generating a total income of EUR10 million per annum.
The team remains active in the European market, continuing to deploy capital into value-add opportunities.
Currently, ESR Europe manages USD1.5 billion in industrial and logistics assets across the UK and Western Europe, representing approximately 30 per cent of its total AUM.
