Partnerships | May 30, 2022

Cadillac Fairview and Boreal IM JV Deploys €250M in Debut European Logistics Deals

These two acquisitions are the first acquisitions in the JV formed by Cadillac Fairview and Boreal IM, which will seek to assemble a €3 bn pan-European logistics portfolio

  • The newly formed Cadillac Fairview and Boreal IM JV has acquired two industrial parks in Park Royal, West London UK and in the Port of Rotterdam, Netherlands

  • These two acquisitions are the first acquisitions in the JV formed by Cadillac Fairview and Boreal IM, which will seek to assemble a €3 bn pan-European logistics portfolio

  • Boreal IM was set up this year by former TPG Real Estate, Blackstone and Europa Capital execs

May, 20 2022 — The Cadillac Fairview & Boreal IM JV (the “JV”) has purchased the Nucleus Estate in Park Royal and an estate within the Port of Rotterdam for a combined total of €250m.

The acquisitions comprise a total of 1.1m sq.ft (109,000 sq.m) of logistics space and mark the JV’s debut acquisitions since being formed in early 2022.

Cadillac Fairview, the real estate arm of Ontario Teachers’ Pension Plan ($242bn AUM), which has actively been expanding into the UK and Europe in the last 18 months, earlier this year teamed up with Boreal IM, led by Louis-Simon Ferland, who oversaw the creation of Blackstone’s acquisition program in the European logistics sector and was responsible for the formation of Logicor from a start-up to a €12.5bn pan-European platform. to form a pan-European logistics and last mile focused JV. The JV will focus on major European geographies including the UK, Germany, France, Netherlands, Spain and Italy and can invest right across the risk spectrum to include standing assets and ground up development.

In London, the JV has acquired Nucleus, an estate of four warehouses in Park Royal from fund manager abrdn. Park Royal is strategically located between London Heathrow Airport and the capital and is London’s premier industrial estate, home to more than 1,700 businesses. Constructed between 1999 and 2003, the assets comprise a total of 131,000 sq.ft (12,000 sq.m) and are fully leased to a diverse range of occupiers including DPD.

In Rotterdam, the JV has acquired an estate of six warehouses in the heart of the Port of Rotterdam, Europe’s largest seaport. The warehouses – constructed in 2006 – comprise a total of >1m sq.ft (97,000 sq.m) and are fully leased to a range of occupiers involved in port-led distribution activities.

As part of a planned forward looking ESG strategy, the JV will be harnessing technology to measure and benchmark the carbon footprint of every asset, and will also look to upgrade the designs and energy systems of its assets.

Louis-Simon Ferland, founder and partner at Boreal IM said: “The acquisition of these assets marks the first step in our mandate with Cadillac Fairview. We will be focusing on assets across core European locations where fundamentals support outsized demand for logistics assets. Both of these acquisitions have been driven by our focus on making thematic investments by closely analyzing macroeconomic trends and identifying paradigm shifts. Our aim is to drive long-term returns for our investor and both of these deals have in place the right characteristics to deliver this.”

Jenny Hammarlund, head of Europe and managing director at Cadillac Fairview said: “Cadillac Fairview is focused on expanding its global real estate holdings and Europe is a key part of this. Our partnership with Boreal enables us to team up with a best-in-class group of professionals with highly relevant experience, to build up a significant exposure to the European logistics and last-mile sectors, which continue to have good underlying fundamentals underpinned by strong demand for best-in-class ESG driven assets. We look forward to working closely with Boreal to continue to grow this strategy over the coming years”

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 $242 bn 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.

Internationally, 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

Headquartered in London, Boreal is a pan-European investment management firm founded by its Partners, who on average bring over 17 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. 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.

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