Transaction is KKR’s first in France via its Core+ real estate strategy, and fourth for the strategy in Europe this year following UK, Finland and Sweden acquisitions
Paris October 19th, 2023 – KKR and Etche, KKR’s logistics real estate platform in France, today announced the acquisition of the SCOTT logistics portfolio from Ivanhoé Cambridge, comprising five buildings with a total area exceeding 160,000 square meters. These assets, two of which have just been completed, are strategically located in prime logistics zones in the ‘Dorsale’ on the outskirts of Lyon, Grenoble, Orléans, Compiègne and Strasbourg. The buildings are fully occupied by quality anchor tenants on long-term leases.
The acquisition continues Etche’s strategic focus on the logistics sector and is KKR’s first transaction in France through its European Core+ real estate strategy, which focuses on investing in high quality, substantially stabilised assets with medium-term value growth potential.
“The acquisition of this portfolio is a clear demonstration of our ability to swiftly execute significant deals in a challenging market environment, thanks in large part to the reinforcement of our teams with Joffrey Houdoux (Investment Manager) and Julien Chevrier (Chief Administrative and Financial Officer) who joined the firm this year. This strategic portfolio combines strong fundamentals and significant potential for value appreciation, which will allow us to navigate the current period with confidence. It serves as an excellent foundation upon which we can soon aggregate new buildings of similar quality,” said Vincent Lauret, President of Etche.
“This first acquisition through our Core+ strategy in France reflects our desire to acquire a quality portfolio for the long term, particularly in the logistics sector. We expect that the sector fundamentals will continue to be very positive for the years to come, particularly given the lack of future supply in France, which should continue to benefit owners of existing, quality assets,” commented Mai-Lan de Marcilly, Managing Director and Head of Transactions France & Hotels at KKR.
“This transaction is exemplary of our broader ambition in France and regionally – to invest in high-quality assets in prime locations and with strong fundamentals, and where we have the potential to drive value. The collaboration with Etche in France has created a strong basis for our team to invest behind the themes that we like, particularly logistics which is benefiting from the rise in e-commerce penetration rates and on-shoring of supply chains. We’re delighted to have expanded the portfolio into France and look forward to building further on this,” continued Ian Williamson, Managing Director and Head of Core+ Real Estate in Europe at KKR.
“We are delighted to have successfully and seamlessly concluded the sale of these five assets from our Hub&Flow logistics platform to KKR-Etche. This transaction is the result of our asset management efforts and enables us to recycle our capital in the logistics market. We remain convinced of the logistics sector’s resilience, and this sector will continue to be a strategic priority for us over the long term through the growth of the Hub&Flow platform in Europe along main logistics corridors,” added Maud Wargny, Senior Director, Investments, Europe, at Ivanhoé Cambridge.
KKR is an active investor in logistics real estate across Europe and has a strong track record of investing across real estate sectors in France. The Etche platform currently owns and operates a portfolio of over fifty logistics and light industrial properties across the country. This latest acquisition builds on the regional expansion of KKR’s Core+ strategy since launching in 2022, following acquisitions in Sweden, Finland and the UK earlier this year across logistics, residential and student housing, and in logistics in the Netherlands last year.
CA-CIB provided funding for the operation through a structured financing arrangement in the form of a green loan.
About Etche
Founded in 2010, Etche is a privately-owned French real estate company. A portfolio company of global investment firm KKR, Etche also carries out asset management assignments on behalf of real estate investors. With a portfolio of around fifty assets across France in the corporate real estate sector (business parks, industrial, and logistics properties), Etche is currently undergoing a strategic shift to prioritise logistics-oriented real estate through divestitures or the acquisition of existing or planned properties. With a strong ESG (Environmental, Social, and Governance) strategy, the company has launched an ambitious decarbonization plan for its portfolio, encouraging its suppliers and employees to identify innovative and more environmentally friendly solutions.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on X @KKR_Co.
About Ivanhoé Cambridge
Ivanhoé Cambridge develops and invests in high-quality real estate properties, projects and companies that are shaping the urban fabric in dynamic cities around the world. It does so responsibly, with a view to generate long-term performance. Ivanhoé Cambridge is committed to creating living spaces that foster the well-being of people and communities, while reducing its environmental footprint.
Ivanhoé Cambridge invests internationally alongside strategic partners and major real estate funds that are leaders in their markets. Through subsidiaries and partnerships, the Company holds interests in 1,500 buildings, primarily in the industrial and logistics, office, residential and retail sectors. Ivanhoé Cambridge held C$77 billion in real estate assets as of December 31, 2022, and is a real estate subsidiary of CDPQ (cdpq.com), a global investment group. For more information: ivanhoecambridge.com.
MEDIA CONTACTS
ETCHE
Treize Cent Treize
Aurélie Caron / Lou Girault-Solal / Alain N’Dong – +33 1 53 17 97 13 – Presse_Etche@1313.fr
KKR
FGS Global
Alastair Elwen / Sophia Johnston – KKR-Lon@FGSGlobal.com – Tel: +44 (0) 20 7251 3801
IVANHOE CAMBRIDGE
Galivel & Associés
Carol Galivel / Sébastien Matar – + 33 1 41 05 02 02 – galivel@galivel.com
Thomas Carlat – Ivanhoé Cambridge – +33 6 73 46 00 97 – thomas.carlat@ivanhoecambridge.com
