M&G Real Estate Acquires €28.5 Million Light Industrial Development Site in Greater Paris With BT Immo

M&G Real Estate has agreed to acquire and fund the development of a light industrial and urban logistics scheme in Aulnay-sous-Bois, Greater Paris, in a €28.5 million off-market transaction structured through a forward-funding agreement with French developer BT Immo, the firm announced Sept. 24.

The investment was made on behalf of a joint venture with an Asian institutional investor under a separate-account mandate. The project will redevelop a 23,000-square-meter brownfield site — the former location of an office building — into approximately 12,400 square meters of flexible industrial space across eight units, targeting small and medium-sized enterprises, urban logistics operators and service businesses in the supply-constrained northern Greater Paris market.

Deal Structure and Project Details

The transaction was sourced off-market and structured as a forward-funding agreement, with M&G Real Estate committing capital ahead of construction completion. The eight-unit scheme is designed to serve multiple occupiers rather than a single large logistics tenant, with each unit averaging roughly 1,550 square meters. The site sits near the A1 and A3 motorways and Paris Charles de Gaulle Airport, providing access to regional and international transport networks.

The development is targeting BREEAM Excellent certification and will incorporate heat pumps, fossil fuel-free energy systems and photovoltaic-ready roofs. By redeveloping an existing brownfield site, the project adds modern industrial supply without consuming undeveloped land in a metropolitan market where available land is limited.

At the reported €28.5 million project value, the scheme implies a cost of approximately €2,298 per square meter of planned lettable area and roughly €1,239 per square meter of total site area. Because the figure covers both acquisition and development, it represents a total project investment rather than a stabilized asset valuation.

Executives Comment on the Investment Rationale

Antonin Prade, Investment Director France at M&G Real Estate, said the transaction reflects confidence in the structural dynamics of the French light industrial and logistics market, particularly in urban locations where demand outpaces supply.

"This investment demonstrates our confidence in the long-term fundamentals of the French light industrial and logistics market, particularly in urban locations where demand significantly exceeds supply," Antonin Prade said. "Aulnay-sous-Bois is a well-established logistics hub with excellent connectivity and a scarcity of modern, sustainable space. By redeveloping a brownfield site, we are creating high-quality accommodation that will help businesses operate, grow and serve the Greater Paris region more efficiently."

Peter Riley, Head of UK and European Fund Management at M&G Real Estate, pointed to the firm's off-market sourcing capabilities as central to the transaction.

"This off-market transaction highlights the strength of our origination capabilities and local market networks across Europe," Peter Riley said. "Aulnay is an excellent example of how M&G Real Estate can deploy institutional capital into compelling opportunities supported by structural tail winds and attractive investment fundamentals."

Market Context: Northern Greater Paris Industrial Supply Constraints

The Aulnay-sous-Bois project sits within a broader pattern of demand for last-mile and regional distribution space in dense metropolitan markets. Businesses increasingly require facilities positioned close to consumers and major transport infrastructure, and the northern Greater Paris logistics corridor — bounded by the A1 and A3 motorways and anchored by Charles de Gaulle Airport — has seen limited new supply of modern, energy-efficient industrial space.

Redevelopment of obsolete office and industrial stock has emerged as one of the primary mechanisms for adding supply in markets where greenfield land is scarce. The Aulnay-sous-Bois scheme replaces a former office building with flexible space designed for the operational requirements of SMEs and logistics users, a tenant profile that has grown as e-commerce and evolving supply chains push demand for smaller, well-located distribution points.

The eight-unit format diversifies occupier exposure across the asset, reducing reliance on a single large tenant.

M&G Real Estate's Broader Platform

M&G Real Estate is part of M&G's approximately €96 billion private markets business. The wider M&G group reported €449 billion of assets under management as of June 30, 2026. Within asset management, M&G reported £82.8 billion of private-asset assets under management and administration as of the same date, up from £80.8 billion at year-end 2025, supported by £1.3 billion of private-markets net inflows in the first half of 2026.

The Aulnay-sous-Bois transaction represents a relatively small deployment at group scale but illustrates M&G Real Estate's strategy of sourcing operationally intensive, locally originated deals for long-term institutional investors through separate-account mandates. The firm has identified light industrial and urban logistics as a sector underpinned by long-term structural trends including e-commerce growth, supply chain reconfiguration and the need for businesses to locate closer to end consumers.