Fairway advised Dream Industrial Europe Advisors Cooperative UA (a subsidiary of Dream Industrial REIT) on behalf of Greenberg Traurig and on the French side of the acquisition of a pan-European logistics portfolio from Clarion Partners Europe. Fairway was assisted by Cheuvreux (Marie-Anne Le Floch and Vincent Passerat) on the notary aspects of the transaction.

This portfolio of 31 logistics properties, which has been built up over the past four years, totals more than 827,000 sqm, spread over six European markets (France, Germany, the Netherlands, Spain, Slovakia and the Czech Republic). The value of the assets amounts to €882 million, which represents an initial capitalization rate of around 4%, including surplus land. In terms of value, nearly 30% of the 31 properties are located in France, the largest share of the countries involved. The portfolio includes significant surplus land totaling 95,000 sqm, offering opportunities for longer-term intensification.

The portfolio is 100% leased with an average term of 5.3 years, the average construction date is in the mid-2000s, and the average clear height is 10.5 meters. The properties are leased to a range of tenants with high credit/investment grade ratings, including multinational companies. Food distribution and third-party logistics tenants represent 50% of the portfolio by net rent.

“The transaction provides a unique and transformational opportunity to accelerate Dream Industrial’s European expansion strategy, and enhances its institutional asset management, leasing and internal development platform. Our long-standing relationships with leading European institutions, including Clarion, were instrumental in enabling us to execute this transaction, and we look forward to continuing to grow and enhance our portfolio in Europe,” said Bruce Traversy, chief investment officer for Dream Industrial REIT.

Alistair Calvert, CEO of Clarion Partners Europe, added: “This transaction confirms our market-leading position in bringing together very high quality assets in structurally supported sectors before realizing significant value on behalf of our investors through dispositions to established counterparties.