Last October, Julien MONGOIN spoke with LETTRE M² about the current challenges for logistics building developers and investors, and provided an update on the growth momentum of FACTOR’INDUSTRY REAL ESTATE in the current economic climate.
Current Challenges
The current challenges primarily stem from the multiplicity of administrative procedures related to warehouses which leads to an overly slow project development process.
A slowed pace that is neither in line with industrial expectations nor consistent with the State's ambition to reindustrialize France. Added to this are the scarcity of land and the revitalization of brownfield sites, which is certainly necessary but increasingly difficult (site decontamination, dismantling, new standards, available locations often landlocked or too close to urban areas and therefore not very strategic for the development of logistics activities, etc.).
Finally, the fact that the current financial balance has become precarious due to the sharp concomitant increase in construction costs and interest rates adds an additional layer of complexity.
Despite the slowdown in the overall real estate market, we are continuing our growth.
A Strong Development Strategy
Today, we have nearly 180 ha of secured land allowing for the construction of over 600,000 m² in the regions of Ile-de-France, Nord, Grand Est, Auvergne-Rhône-Alpes, and Val de Loire. Several projects are also undergoing feasibility studies in other regions.
In parallel, we are continuing our investment policy in industrial and small-scale logistics products with three assets currently in our portfolio located within the Lyon metropolitan area, in Seine Saint-Denis, and in Châteauroux.
We also have exclusive rights to four other assets, whose acquisitions are expected to take place between the end of the year and the first quarter of 2024, and are actively seeking investment opportunities for volumes of €1 to 10M across the entire French territory.
Julien Mongoin | Co-founder of Factor’Industry Real Estate (FIRE)
Download Letter No. 465 | November 2023 – Interview on page 59
