Invista European Real Estate Trust has bought a portfolio of French logistics properties for €213.8m (£144m).
The portfolio comprises 3.6m sq ft (335,000 sq m) of logistics space across 27 properties located in the regional markets of France. The purchase price reflects a net initial yield of 6.47%.
The assets are mainly located in the well established distribution areas of Amiens (north of Paris) and in the Provence Alpes Cotes d’Azur (PACA) region along the Rhone valley distribution corridor.
Principal tenants representing around 52% of the portfolio by gross rent are group subsidiaries of Norbert Dentressangle, the French logistics/distribution company. The acquisition includes around 193,752 sq ft (18,000 sq m) of land available for development.
The trust is also committed to buy a 193,752 sq ft (18,000 sq m) retail warehouse park located at Pocking in Bavaria, Germany for E17.7m. The fully income producing park is anchored by national retailers OBI, PLUS and Rossmann.
News of the two acquisitions coincides with the announcement that the closed-ended Luxembourg investment company is to undertake a placing for cash of up to 10.3m new ordinary shares. Proceeds from the placing, which is being conducted by JPMorgan Cazenove, will be deployed to complete the acquisitions of both the French logistics and German retail warehouse transactions.
The trust floated on the London Stock Exchange on 20 December 2006. Since then its share price has risen by 15%.
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