Rockspring Property Investment Managers, the London-based fund manager, has invested nearly €100 million in two deals in the UK and France. The firm acquired four French logistics assets from CBRE Global Investors, the Los Angeles-based real estate investment management giant, for €48 million and Oxford-based Abingdon Business Park from Standard Life Investments, for £36.4 million (€50.5 million; $55.5 million).
Rockspring used capital from its European core-plus/value-added fund, TransEuropean V, to fund the deal with CBRE GI, which follows on from Rockspring’s investments in Paris Oise Logistics Park in the north of Paris and Dagneux Logistics Park in Lyon, and increases the fund’s French logistics holdings to more than 3 million square feet.
CBRE GI sold the four assets, two of the properties are situated north of Paris, in Moussy-le-Neuf and Verneuil-en-Halatte, the third is in Saint-Quentin-Fallavier, close to Lyon and the fourth is in Saulce-sur-Rhone, on behalf of the Logistics Property Fund Europe (LPFE) which was launched in 2002.
The portfolio is currently 95 percent leased to tenants including DSC, a subsidiary of French multi-national Saint-Gobain, European electrical retailing group Darty, and the transport and logistics providers Transmec Group and 3PL.
“As we complete the investment phase for TransEuropean V, this portfolio provides a strong addition to the existing assets in the key French logistics zones and is in alignment with the fund’s investment strategy to acquire well-located, high-quality real estate in markets which have supply-side constraints and good prospects for rental growth,” commented Paul Hampton, partner at Rockspring.
Launched in 2012, TransEuropean V, is now 95 percent committed with investments in France, Switzerland, Germany, Sweden, Spain, the Netherlands, and the UK. The fund is currently delivering a 16.6 percent net IRR per annum. Rockspring is also fundraising for TransEuropean VI, targeting €400 million. The firm will use up to 50 percent leverage for the fund so total firepower is expected to be in the €800 million to €900 million range.
Rockspring acquired Abingdon Business Park on behalf of the fund, UK Value 2. The 393,000 square foot business park is the ninth asset to be acquired on behalf of the fund and brings the total aggregate value of assets in UK Value 2 to over £300 million.