M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that it has signed a lease renewal for c. 7,000 sq m of logistics space in Villebon- Sur-Yvette, a prime logistic corridor on the outskirts of Paris, to SOGEC Marketing SAS, a subsidiary of La Poste Group which offers storage services on behalf of third parties.
SOGEC Marketing SAS has agreed a 10-year lease renewal for the warehouse, which has served as a key distribution hub for the last 17 years. This renewal represents a 46% increase over the previous headline rent, reflecting the strength of demand for larger logistics space in the Courtaboeuf area.
M7 will be also undertaking an active asset management strategy to upgrade the energy performance of the asset and reduce tenant costs, such as the installation of a building management system, as well as improving the heating, ventilation and air conditioning system.
Located approximately 25 kilometres south of Paris, the property benefits from excellent transport links with direct access to the main arterial routes surrounding the French capital.
M7 France currently manages 30 assets. M7’s aim with its current portfolio is to improve the energy performance of its assets and subsequently develop its logistics park over the coming months.
Jean-Kévin Robillard, Managing Director, France, of M7 Real Estate, said: “Following positive discussions with SOGEC Marketing SAS, we have successfully regeared this well located asset on a long lease, capturing a significant uplift in rent. The supply of logistics space surrounding the French capital remains extremely constrained and our on the ground team continues to identify opportunities to actively manage our portfolio to generate value on behalf of our investors.”
