Global real estate investor Oxford Properties Group has made its first investments in Spain, with the acquisition of seven Spanish urban logistics assets, via three separate transactions.
The acquisitions were sourced and secured through Oxford’s portfolio company, M7 Real Estate (M7), a European investor and asset manager specialising in multi-tenanted properties, and are in line with Oxford’s strategy of increasing its exposure to urban logistics assets in key distribution locations with supply constrained dynamics.
The assets, which comprise a total of 90,000 m2, were acquired throughout Q2 and Q3 with attractive financing terms. Located in prime logistics hubs within three key cities—Barcelona, Bilbao and Tarragona—the assets benefit from excellent connectivity to transport links and infrastructure, as well as uncapped annual CPI increases.
M7 will undertake an active asset management strategy to upgrade the sustainability performance of the assets, targeting improved BREEAM and EPC ratings, as well as value-add capital expenditure initiatives to improve the space.
Oxford has invested over €1.8 bn gross through M7 since acquiring the platform in September 2021, helping to accelerate its ambitions to build a European logistics portfolio of scale.
David Ebberell, CEO of M7 Real Estate, commented: ‘Having now invested around €1.8 bn in the year since we were acquired by Oxford, these latest transactions provide a further strong endorsement of our working relationship and our ability to help Oxford deliver its global logistics ambitions. In this case, Oxford has entered the Spanish market for the first time and added seven very well located urban logistics assets in the supply contrained markets of Barcelona, Bilbao and Tarragona to its portfolio, all bar one of which benefit from uncapped annual CPI increases providing a hedge in the current inflationary environment.’
CBRE, Savills and Cushman & Wakefield acted for the various parties.