Industrial Partners 1 (VIP1), an investment partnership between Valor Real Estate Partners and AIG Global Real Estate, has acquired an 80,000 sq m portfolio of three logistics assets located around Paris, in an off market deal from SEGRO and its Continental European joint venture, SELP, for around €35m.

The portfolio is located in prime logistics hubs around Paris. It comprises two assets located to the east of the city, including an 18,000 sq m income generating, cross-dock facility in Croissy Beaubourg (acquired from SEGRO) and a 43,000 sq m refurbishment opportunity in Emerainville, as well as a 19,000 sq m multi-let asset in Les Ulis (acquired from SELP).

Croissy Beaubourg and Emerainville are currently fully let to Fashion Partner Network and DHL respectively, although DHL is due to vacate by year end providing an opportunity to reposition the asset. Les Ulis is multi-tenanted with 4,000 sq m available for new tenants.

VIP1 will invest a further €8m of capex into the portfolio, primarily to fund a complete refurbishment of Emerainville.

Christian Jamison, Managing Partner of Valor said:

"I am pleased to announce VIP1's first acquisition in France. The deal underpins VIP1's strategy of investing in good quality assets, with strong fundamentals in high barrier to entry, urban locations.

"The portfolio is well-positioned to service Paris related demand and benefit from the growth of e-commerce in France.

"We continue to see an exciting pipeline of opportunities both in the UK and European industrial and logistics markets, and we are in a strong position to act quickly to capitalise on these."

The deal is being closed all equity although it is anticipated that debt will be added in the near term.