M7 Real Estate Completes €181 Million Acquisition of 13 Spanish Logistics Assets for Oxford Properties Group Joint Venture

M7 Real Estate has completed a €181 million acquisition of 13 Spanish logistics assets spanning 138,411 square meters, the firm announced, marking the eleventh investment executed on behalf of the European Supply Chain Investment Partnership (ESCIP) — a joint venture between AustralianSuper and Oxford Properties Group.

The acquisitions were structured as two separate transactions, with assets purchased from a joint venture between the Aristeas & Partners Group Real Estate and from Patrizia. M7 Real Estate manages the ESCIP vehicle and acted as the acquiring entity on behalf of the partnership.

The First Transaction: 12 Assets Across Madrid and Barcelona

The first transaction comprises the purchase of 11 logistics assets in Madrid and one in Barcelona, acquired from a joint venture between the Mazin family-backed Aristeas Group and Partners Group. The 12-asset portfolio spans 108,115 square meters and is 88% let to 14 occupiers.

The properties consist of a mix of mid-box and urban logistics assets developed over the last 10 years, ranging in size from 4,750 square meters to 13,950 square meters. The majority of the assets either hold or are targeting a BREEAM "Very Good" certification. According to M7, the portfolio is situated within prime logistics corridors, with proximity to dense population centers and critical transport infrastructure.

The Second Transaction: Southern Madrid Urban Logistics Park

The second acquisition comprises a multi-let urban logistics park in Southern Madrid, purchased from Patrizia. Constructed in 2022, the property is fully occupied by three tenants and provides approximately 30,296 square meters of logistics space across three individual buildings.

M7 noted that the Southern Madrid asset benefits from direct access to the A-4 corridor, one of southern Spain's primary motorways, providing access to nationwide distribution channels and the ability to service the Spanish capital.

Portfolio Scale and Strategy

The two transactions more than double ESCIP's Spanish portfolio to over 225,000 square meters. Combined with prior investments, M7 has now brought ESCIP's total assets under management to more than €1.7 billion in gross asset value, comprising a portfolio of over 1.31 million square meters across 132 European logistics assets in the UK and Europe.

M7 said the Spanish assets carry strong underlying fundamentals, with Madrid described as Spain's largest logistics hub and a critical node for domestic and pan-European distribution. In Barcelona, M7 cited limited availability of centrally located assets as a factor reinforcing supply-demand dynamics for logistics assets in that market.

"We are proud to expand our presence in the Spanish logistics market with the deployment of €181 million across two acquisitions, marking a significant milestone in our growth of ESCIP," said John Pow, Managing Director at M7 Real Estate. "Securing this high-quality portfolio of assets 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."

No cap rate or individual asset pricing was disclosed in connection with the transactions.

Sources

Oxford Properties Group — M7 Real Estate acquires €181 million of prime Spanish logistics assets