Warehouses De Pauw WDP buys 2 logistics parks in France, EUR 315m investment

WDP acquires 2 new logistics platforms (Bollène and Puceul) from the listed real estate group Altarea. The investment amounts to EUR 315m for a total GLA of 305k sqm, of which 76k sqm under development for completion in 2026. The initial net yield is expected 5.2% with an upside rental potential of 15%. We believe that recent press speculation that Hines is not selling the Auchan portfolio anymore. WDP was rumoured to be in final negotiations for a part of 200m at a 5.0% yield. This deal is similar in size, but totally different locations and also concerns 2 compact parks instead of 7-8 locations. WDP needs to build size in France and that is exactly what this deal brings. The impact on our EPRA EPS25 is marginally positive as we had already pencilled the Auchan deal in at 5.0% in 1Q25. We expect LTV to rise from 36.6% to around 38.3% over 4Q24. WDP will maintain a Net Debt/EBITDA below 8x and estimates it has 800m headroom at the moment.