M7 Real Estate acquires €80m logistics portfolio in France

Pan-European investment and asset manager M7 Real Estate has acquired a portfolio of four industrial and logistics properties in France for approximately €80 mln.

Logistics M7

This acquisition, M7's first since its integration with Oxford Properties and AustralianSuper, was made on behalf of the European Supply Chain Income Partnership (ESCIP), a joint venture focused on European logistics assets. 
The portfolio was purchased from a partnership between PGIM Real Estate's European Core Plus strategy and French real estate management firm Alderan.
AustralianSuper's acquisition of a 50% stake in Oxford Properties' €840 mln industrial and logistics portfolio and its M7 platform finalized in April, established the joint venture. 
ESCIP aims to build a €4.5 bn portfolio within three to five years, and this transaction marks its initial investment in continental Europe, signaling its intent to expand across key European logistics markets.
The portfolio spans roughly 109,000 m2 and is 83% leased, situated in strategic distribution locations across France, including Lyon, Marseille, Nancy, and Angers. Notable tenants include ID Logistics and Pomona EpiSaveurs. 
M7 plans to enhance the portfolio by refurbishing vacant space, improving its sustainability profile, and increasing its overall income potential.
This acquisition follows two previous investments by M7 for the ESCIP platform in the Greater Manchester area of the UK, totaling approximately £60 mln (€69 mln) earlier in the year.
John Pow, managing director at M7 Real Estate, commented: “Following the completion of Oxford and AustralianSuper’s joint venture earlier this year, we are now focused on executing our growth strategy for the platform. This milestone transaction underscores our conviction in the sector and our view on the French market, as we look to scale the JV’s portfolio and continue deploying capital into high growth markets across the UK and Western Europe. Our immediate focus is on undertaking our property level asset management plans, leveraging M7’s expertise and on the ground presence to capitalise on the continued demand for logistics space in the French market.”
Alicia Peters, VP Industrial & Logistics at Oxford Properties, commented: “Having partnered with AustralianSuper at the beginning of the year to grow the ESCIP portfolio and the M7 Real Estate platform, this first acquisition in Europe is an important step in achieving that goal while giving us exposure to key French logistics markets outside of Paris which complement our existing portfolio. This transaction underscores both M7’s ability to source and execute the acquisition of high quality, well located assets across Europe and reflects our continued conviction in the industrial and logistics sector.”
Matthew Fidge, investment director at AustralianSuper said: “This portfolio acquisition highlights our conviction in our European multi-let logistic strategy, as well the benefit of the M7 Platform’s established capability in the French market.  AustralianSuper looks forward to working with our partners to deliver attractive risk-adjusted returns for our members, and are ambitious to continue this momentum as we seek to further scale the ESCIP portfolio alongside the Oxford and M7 teams.”
Nabil Mabed, head of France, Spain & Portugal at PGIM Real Estate added: “We acquired this portfolio in an off-market transaction during COVID in 2020 and have created significant value through asset management hand in hand with our operating partner Alderan. We are happy to complete a strong exit for our European core plus strategy in a market where overall transaction volumes are still low. This is a demonstration of the resilience of the French logistics market and of the quality of the portfolio which has a potential for further value creation under M7’s ownership.”