Clarion Gramercy has committed €122.5m (£106.4m) to forward fund two Grade-A warehouse developments in France that total more than 1.48m sq ft.
The investment fund manager will fund the speculative development of a 739,000 sq ft logistics warehouse at the A5 logistics park in Reau, 40km southeast of Paris city centre. The scheme, which will take a year to build, will be developed by Nexity, and construction will begin later this month.
The second speculative development is a 744,000 sq ft warehouse in Brebières, near Lens in northern France. The scheme, developed by Goodman, is under construction, and is due to complete before the end of the year.
In addition to the two forward funding deals, Clarion Gramercy, which was formed by Clarion Partners’ acquisition of a majority stake in Gramercy Europe last April, has acquired a 203,000 sq ft warehouse close to Dijon for €11.5m (£10m) from Amundi Real Estate. The scheme is let on long leases to GEALAN Sarl, a window manufacturer, and global manufacturer JTEKT Automotive.
Alistair Calvert, chief executive of Clarion Gramercy, said: “These are highly attractive development opportunities in core European logistics locations that meet our strict and disciplined investment criteria. Despite the strong investor interest in the sector, our 10+ year track record allows us to leverage our local market origination expertise and partner with established developers to continue generating outsized returns for our investors, whilst maintaining a consistent rate of deployment.
“France is an increasingly attractive market and focus for the Clarion Gramercy team, as e-commerce penetration increases at a faster pace than in many other Western Europe markets and new supply struggles to keep up with growing demand.”