First acquisition in urban logistics for the portfolio Pictet – FREO



Pictet Alternative Advisors and FREO Group have acquired a last mile logistics asset located in Montreuil. The 9,000 sqm warehouse has a prime location within the A86 Paris ring road and highways A3/A4.

Currently fully let to a single tenant, it benefits from a high reversionary potential thanks to the strong rental growth in the sector and the very low vacancy in the area. The asset will benefit from a cap-ex program aimed at reducing its environmental footprint.

Charles Baigler, Head of Acquisitions at Pictet Alternative Advisors, said: “Despite the continuing market uncertainty, our conviction in the Paris urban logistics sector remains high. This is supported by strong occupier demand and diminishing supply, which is driving rental growth. We look forward to increasing our exposure to this strategy.”

Romain Frémont, CEO of FREO France commented: “This acquisition is part of a larger investment strategy. Our objective is to deploy €100m to build up a portfolio of urban logistics assets in Paris region through a manage-to-core or build-to-core strategy. A second acquisition is planned before the end of 2022. In this period of uncertainty, last mile remains an asset class with strong and enduring fundamentals.”

The financing has been provided by Alantra Private Debt and marks its first investment in France. Jaime Cano, Partner of Alantra Private Debt commented: “We are delighted to support Pictet and Freo in their new joint strategy on urban logistic assets. We are believers in the asset class in which we have already invested in other jurisdictions and the location, Paris, as one of the main European logistic hubs.

As part of this transaction, Pictet and Freo were advised by Screeb, Kriteria Développement and Fieldfisher. BNP acted as the agent. Alantra was advised by Fairway Avocats and Stibbe.