M7 Real Estate invests €181m in Spanish logistics

Investment and asset manager M7 Real Estate has acquired 13 high-quality logistics assets in Spain for €181 mln.

M7 Spain Acquisition Les Franqueses Asset

These properties, totalling 138,411 m2, were purchased in two separate transactions from an Aristeas & Partners Group joint venture and an institutional investor. The acquisitions were made on behalf of the European Supply Chain Investment Partnership (ESCIP), a joint venture between AustralianSuper and Oxford Properties Group, managed by M7.

The first transaction involved 11 modern logistics assets in Madrid and one in Barcelona, covering 108,115 m2. The portfolio is 88% leased to 14 occupiers and consists of mid-box and urban logistics properties developed in the last decade, ranging from 4,750 to 13,950 m2. All properties hold either BREEAM “Very Good” or “Good” certification and are strategically located in prime logistics corridors for efficient last-mile distribution.

The second transaction secured a multi-let urban logistics park in Southern Madrid, built in 2022 and fully occupied by three tenants. It offers approximately 30,296 m2 of modern logistics space across three individual buildings. The property benefits from direct access to the A-4 corridor, a key motorway for nationwide distribution and servicing the Spanish capital.

These new Spanish assets are predominantly located in inner-Madrid and benefit from strong market fundamentals, including population growth and urbanization, which are driving demand for modern, well-located properties.

With these acquisitions, ESCIP's Spanish portfolio has more than doubled to over 225,000 m2, aligning with its goal to build a significant portfolio across Europe's fastest-growing logistics markets. M7 has now completed eleven investments for ESCIP across the UK and Europe, bringing the total assets under management to over €1.7 bn across 132 European logistics properties, totalling more than 1.31 million m2.

John Pow, managing director at M7 Real Estate, commented: “Expanding our presence in the Spanish logistics market with the deployment of €181 mln across two acquisitions marks a significant milestone in our growth of ESCIP. Securing this high-quality portfolio of assets also reflects our conviction in the industrial and logistics sector and the value of strategic locations such as Spain, where we’re seeing strong urban domestic growth continue to drive rental and investment demand.”