Starz Real Estate has provided an acquisition and capex senior facility secured by a light-industrial and distribution asset located in Croissy-Beaubourg, Greater Paris area, France. The property was acquired by funds managed by affiliates of Fortress Investment Group LLC (“Fortress”) in August 2023 as part of a sale & leaseback transaction with the seller signing up to a long-dated triple-net lease.
Consisting of two adjacent buildings and sitting on a 9.5 acres plot, the property totals c. 18,900 sqm of lettable space and was developed in phases around the 1990s and subsequently refurbished. The space use is split between manufacturing, storage, distribution and a small office component with featured clear heights ranging from 6.5 to 8.5 metres. Having used the site since the early 2000s as their European headquarters, the seller & tenant is the French subsidiary of a US-based manufacturer of professional hygiene, cosmetics and disinfectant products.
The property is strategically situated in an established business park (ZAC Pariest), 15-min drive from central Paris and at the intersection of key motorways A4 (to east of France and Germany) and A104 (Paris 3rd ring road) providing excellent connectivity to greater France and Europe. Paris Charles de Gaulle and Orly airports are both within a c. 30-min reach.
Gregoire Millet, Director at Starz Real Estate, said: “We are glad to have supported Fortress on their acquisition of this strategically-located industrial asset on the outskirts of Paris. Whilst benefitting from a long-term lease, the asset and its sub-market are also underpinned by strong property fundamentals amongst which lack of available supply and low vacancy rate. In the current market environment, we continue to support sponsors with proven expertise in sourcing and underwriting transactions that turn into defensive investments from a lending standpoint.”
Felix Danon, Director at Fortress Investment Group, said: “Fortress has a deep conviction in Urban Logistics and in the resilience of French real estate. We are therefore very pleased to have expanded our Industrial portfolio with a first asset in France.”
Alphonse Fontana, Investment Professional at Fortress Investment Group, said: “Croissy-Beaubourg is one of the key industrial sub-markets around Paris where vacancy and future supply remain constrained. The building fits well with our strategy of renovating existing, yielding assets in cooperation with incumbent tenants, with a keen focus on improving energy efficiency and ESG standards.”