GreenOak’s European logistics platform reaches €2bn

The majority of the assets were acquired through the private equity real estate firm’s latest fund targeting the region.

GreenOak Real Estate has expanded its European industrial real estate to €2 billion, four years after making its first investment in the regional sector.

The firm’s most recent European logistics transactions included the acquisition of two French portfolios comprising a total of 20 warehouses and cold storage assets, located along the primary logistics corridor between Paris, Lyon and Marseille; as well as the purchase of two fully-leased cold storage properties in the core Spanish logistics markets around Barcelona and Valencia.

The French investments closed during the first half of the year, while the Spanish transaction was completed in July. The sellers were understood to be a mix of private companies, private funds and institutional investors.

The transactions, which were off-market deals, were done through GreenOak’s latest European real estate fund, GreenOak Europe Fund II, which closed this year on €656 million and, alongside co-investment capital, has total equity of €900 million.

“With continental Europe 10 to 15 years behind the US and the UK in the provision of state-of-the-art facilities, the fundamentals driving occupier demand are strong,” said John Carrafiell, GreenOak co-founder. “With limited competition able to be effective in a multiple of continental Europe’s largest economies, GreenOak’s significant presence and development activity positions our platform well across the continent as a leading investor and developer in the sector.”

Europe Fund II is now significantly committed, with two-thirds of the capital deployed to date in the logistics sector, according to a source familiar with the matter. With the latest transactions, the fund’s Europe logistics portfolio of assets and development projects has now reached 1.8 million square meters (19 million square feet), which upon completion would be valued at approximately €1.45 billion, the source said. All told, including the firm’s remaining Europe Fund I assets as well as additional deals in the pipeline, GreenOak’s European logistics portfolio would total nearly €2 billion.

The European logistics platform comprises assets in France, the Netherlands, Italy and Spain. GreenOak made its debut industrial real estate investments in multiple European countries through Europe Fund II, including its first French acquisition via a four-property portfolio buy in December 2017; and its entry into the Dutch market with the purchase of two warehouses, also in December 2017. Also last year, GreenOak bought eight logistics assets and development projects totaling over 400,000 square meters in Italy, where it acquired its first industrial property in 2016; and purchased six logistics assets and developments in Spain – where the firm has been active in logistics since 2015 – totaling 250,000 square meters.