Partnerships | Jul 26, 2022

Boreal IM and Cadillac Fairview JV Acquires 15 Dutch Warehouses

Follows JV’s €250m debut deals for logistics assets in London and Rotterdam announced in May

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  • Boreal IM & Cadillac Fairview JV acquires 15 warehouses across four regions in the Netherlands

  • Assets acquired from Europa Capital and the majority are last-mile distribution centres

  • Follows JV’s €250m debut deals for logistics assets in London and Rotterdam announced in May

26 July 2022 - The Boreal IM & Cadillac Fairview JV (the “JV”) has closed its third deal, acquiring a logistics portfolio in the Netherlands for an undisclosed sum. Purchased from Europa Capital, the 142,000 sqm (1.5m sqft) portfolio comprises 15 warehouses across four regions, with the majority being last-mile distribution centres.

The JV, which aims to assemble a €3bn pan-European logistics portfolio, made its first two acquisitions earlier this year – the Nucleus Estate in Park Royal, West London, and six warehouses within the Port of Rotterdam, for a combined total of €250m.

Boreal IM partnered with Cadillac Fairview, the real estate arm of $242bn (AUM) Ontario Teachers’ Pension Plan, in early 2022. Boreal IM is led by Louis-Simon Ferland, who oversaw the formation and exit of €12.5bn Logicor, Blackstone’s pan-European logistics platform.

The majority of the properties were built within the last 15 years, with two newly constructed last-mile assets in Amsterdam completed earlier this year. The assets are located in densely populated and supply constrained markets with a majority located in the Randstad, an 8.4m people metropolitan area with a GDP per capita 60% above the Euro Area average. The portfolio, which is 95% leased to a diverse mix of tenants, has a WALB of 5.0 years.

All the assets are BREEAM certified, and the JV seeks to further enhance them with carbon reducing and tracking technology including LED lighting, solar PVs and renewed HVAC systems. The JV’s ESG strategy aims to harness technology to measure and benchmark the carbon footprint of each property and upgrade its design and energy system. It will also establish strong tenant engagement programs and implement green leases where possible.

The transaction brings the JV’s total holdings in the Netherlands, one of the core European geographies targeted by Boreal IM and Cadillac Fairview, to 240,000 sqm (2.6m sqft). The UK, Germany, France, Spain and Italy are amongst the other major European locations identified by the JV, which can invest across the entire risk-return spectrum, including standing assets and ground up developments.

James Farmer, Partner at Boreal IM, said: “This acquisition is a highly strategic one and creates a firm foothold within the Netherlands, one of our key target markets in the build-out of our pan-European portfolio. We were particularly attracted by the low in-place rents, which combined with the leases’ indexation provisions, will offer an attractive combination of defensive cash flows with material medium term upside. It dovetails well with our existing holding in the Netherlands, a 100,000 sqm estate in the Port of Rotterdam. Despite the current macro headwinds, we will continue to selectively make further investments for our portfolio on behalf of the JV with Cadillac Fairview.

We are able to execute this off-market deal by leveraging our extensive network of contacts and deep level sector expertise, and we continue to evaluate the market in search of attractive investment opportunities.”

Jenny Hammarlund, Head of Europe and Managing Director at Cadillac Fairview, said: “Today’s announcement, which sees us acquire a unique group of assets in a strategic market, once again demonstrates the strength of our partnership and joint commitment to growing our logistics portfolio with best-in-class assets and sound ESG practices.”

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Notes to editors

About Boreal IM

Headquartered in London, Boreal is a pan-European investment management firm founded by its Partners, who on average bring over 18 years of industry experience across all sectors, geographies and transaction types. It is supported by a highly motivated and aligned team of skilled professionals focused on acquisitions, asset management and finance.

Boreal analyses macroeconomic trends and paradigm shifts to identify thematic investment opportunities across Europe. Boreal’s current investment focus is logistics and light-industrial properties across Europe. Boreal is focused on assets across core European locations where fundamentals support the competitive demand for logistics, targeting properties across the spectrum, from standing assets to ground-up development.

Leveraging the team’s experience, market knowledge and established networks, Boreal aims to create and to drive long-term value for its investment partners in a sustainable and responsible manner.

About Cadillac Fairview

Cadillac Fairview (CF) is a globally focused owner, operator, investor, and developer of best-in-class real estate across office, residential, logistics, life sciences and mixed-use asset classes. As the real estate arm of Ontario Teachers' Pension Plan, which has $242bn of AUM, CF currently manages in excess of $35 billion of assets across Europe and the Americas, with further expansion ongoing into Europe and Asia.

CF invests in communities with like-minded partners, including Stanhope and Long Harbour in the UK, Lincoln Property Company in the U.S., and Multiplan in Brazil. The company's Canadian portfolio comprises 68 landmark properties, including the Toronto-Dominion Centre, CF Toronto Eaton Centre, Tour Deloitte, CF Carrefour Laval, CF Chinook Centre and CF Pacific Centre.

Continually striving to make a positive impact in communities where it operates by promoting social connection, growth, and a sustainable future, CF's Purpose is Transforming Communities for a Vibrant Tomorrow.

About Boreal IM’s Partners

Boreal IM’s Partners have collectively deployed over €3bn of capital in the industrial sector with some of the world’s largest investors. The Partners have seasoned and highly relevant experience in acquisitions, asset management, finance and platform growth.

Louis-Simon Ferland is the Founder and Chief Executive Officer at Boreal IM. Before founding Boreal IM, Louis-Simon was a Partner at TPG responsible for European investments of a $3.7bn global opportunistic fund. Prior to TPG, Louis-Simon was a Managing Director at Blackstone from 2010 to 2019, where he oversaw the creation of Blackstone’s acquisition program in the European logistics sector. He was actively involved in a variety of European real estate acquisitions, disposals and financings, with a total investment value of more than €20bn. He invested across all major real estate asset classes and transacted across 20 European countries. Louis-Simon began his real estate career as a part of Merrill Lynch’s Global Principal Investments team in London, focusing on pan-European investments. Louis-Simon received Common and Civil Law degrees from McGill University.

James Farmer is a Partner at Boreal IM. Before joining Boreal IM, James was a Partner at Europa Capital where he was the Regional Head of Germany, the Netherlands & CEE and led all logistic transactions for multiple funds across the risk spectrum. James has 17 years of European real estate experience and has invested across core, value-add and speculative development strategies. He has worked in Real Estate Banking and for leading real estate consultants CBRE and JLL. James has been involved in €2bn of acquisitions across eight European countries with around 50% invested in the logistics sector.

Peter Bingel is a Partner and Chief Financial Officer at Boreal IM. Before joining Boreal IM, Peter was at Blackstone for 12 years, where he was a Director in their finance team. Peter has over 15 years of experience in real estate and was the CFO of Blackstone’s UK asset management platform for six years. In his previous role, Peter led the implementation of best-in-class financial reporting to investors, compliance matters, and the provision of accounting supervision and structuring in relation to new acquisitions, dispositions, joint ventures and fund creation.

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