The asset management firm Proudreed has signed a binding agreement with funds managed by Blackstone to sell its industrial portfolio and platform for €2.3 billion, one of the largest such transactions in France in recent years.
"This transaction marks an important milestone for Proudreed," says Christophe Le Corre, chairman of Proudreed. "Our portfolio is the fruit of years of strategic development and operational excellence. Blackstone has recognized the effectiveness of our business model and our leadership position in the business park segment, and aims to accelerate the development of our growth in France."
Under the terms of the agreement, Blackstone is set to acquire around 500 industrial properties valued at €2.3 billion, including 67 secured projects currently under development. The portfolio comprises around 2 million square meters of industrial and logistics sites, as well as business parks "with a high degree of versatility," says Proudreed, with an occupancy rate of 92%.
"The logistics sector in France benefits from solid fundamentals, including supply constraints and growing e-commerce penetration," says James Seppala, head of Real Estate Europe at Blackstone. "We believe that Proudreed's high-quality portfolio is well-positioned to accelerate growth through acquisitions and development, consolidating Proudreed's position in the French industrial market."
The Proudreed platform and its management team, headed by Christophe Le Corre, will continue to manage the existing portfolio and steer development projects. "The company will ensure the optimization and value creation of the assets, guaranteeing continuity, quality of service and smooth execution for tenants and partners," said the group, which since its creation in 1999 has established itself as a leader in differentiated business parks through concepts such as its Veellage live-and-work offering.
Proudreed's non-industrial assets – 250 office and retail properties, valued at €750 million at the end of 2024 – will continue to be held by the company's historical shareholders and managed by the platform.
The transaction is scheduled to be completed by the end of 2025, subject to certain conditions, including the granting of the usual regulatory approvals. Both parties believe that "this transaction will enable Proudreed to accelerate its strategic focus on business parks, logistics and urban distribution."
For the record
Morgan Stanley, Clifford Chance, Ernest Young, Lasaygues, LMT and Forvis Mazars are advising Proudreed on this transaction; Société Générale, Barclays, Simpson Thacher & Bartlett, DLA Piper, Kirkland & Ellis, Attal & Associés, Deloitte Tax & Finance, Arcadis and Nova Ambiente are assisting Blackstone.