M Core and Hermes Properties team up on €500m retail joint venture

European real estate investor M Core has partnered with Iberian retail developer Hermes Properties to develop retail parks and supermarkets in Spain and Portugal. 

Hermes MCore

The collaboration combines M Core's financial strength and asset management skills with Hermes Properties' development expertise and local market knowledge.
Over the next five years, they plan to invest up to €500 mln in projects featuring major tenants like Lidl and Aldi, prioritizing pre-let retail parks and standalone supermarkets leased to essential retailers. 
Hermes Properties will source opportunities, oversee development, and manage leasing, while M Core will provide capital and manage the completed assets through its local Spanish platform. 
The projects will be structured as a joint venture, with Hermes Properties co-investing and leading the development process.
Sebastian Macdonald-Hall, CIO at M Core, commented: "We are really pleased to announce this strategic partnership with Hermes. It aligns with our commitment to developing food-anchored retail parks that combine quality retail with essential services. By leveraging Hermes' expertise in retail development alongside our approach to enhancing local markets, we aim to deliver vibrant, accessible shopping destinations tailored to evolving consumer needs."
Benjamin Lee, Group CFO of M Core, said: “This joint venture is a strategic move in line with our ambitions to scale up our commitment to Iberia with high-quality, income-producing assets that meet rigorous investment criteria. Hermes brings a development track record and deep local knowledge, which perfectly complement M Core’s capital, long-term vision, and existing asset management capability.”
Juan Criado Docando, managing partner at Hermes Properties, added: “We are thrilled to partner with M Core, whose investment ethos and scale match our ambitions for sustainable, high-performing real estate across Iberia. This collaboration allows us to accelerate our development pipeline while retaining our commitment to design-led, tenant-driven schemes.”
This new joint venture expands M Core's activity in the Iberian market, building upon the success of their existing partnership with Stephen Newman and Simon Blaxland, which has already invested over £150 mln (€176 mln) in existing assets in the region.