Oxford Properties Group has acquired two portfolios containing a combined 57 urban logistics and light-industrial assets in Denmark and France from funds managed by M7 Real Estate for €360 million.
The 223,800 sqm Danish portfolio, comprising 27 urban logistics and light industrial assets, is Oxford’s first acquisition in the Nordics. By value, 50% of the portfolio is located in Greater Copenhagen with a further 22% in Denmark’s Triangle region, an established logistics location that serves all major Danish population centres and the German border, due to its central location. The occupier base is well diversified across approx. 75 tenants, with the majority operating in the transport & distribution (3PL), e-commerce & retail and manufacturing sectors.
The French portfolio comprises 169,000 sqm of urban logistics and light-industrial space, with the large majority of the 30 assets located in the Greater Paris area and the remainder situated along the north-south logistics corridor through central France. The income streams are well diversified, underpinned by 120 occupiers ranging from SMEs to large corporations.
M7 Real Estate will continue to asset manage the portfolios on behalf of Oxford.
”As a result of its investment activity over recent years – including last month’s purchase of a US$2.2 billion, 149-asset U.S. light-industrial portfolio from KKR – logistics now represents the largest allocation of Oxford’s capital within its global real estate portfolio,” said Oxford in a statement.
James Boadle, Head of Logistics and Residential, Europe at Oxford Properties, commented: “These acquisitions provide us with a significant addition to our European industrial and logistics portfolio and reflect our strong ambitions in this high conviction sector. We believe that the tailwinds and increased focus on supply chains supporting the sector will continue to drive demand and therefore rental growth in the future.
“These acquisitions provide immediate scale in France and make our first investment into the Nordics, a region with strong market fundamentals, where we continue to look for further opportunities. With M7 continuing to asset manage the properties, we are well positioned to drive value at these assets.”
David Ebberell, CEO of M7 Real Estate added: “[Having acquired and assembled these portfolios of previously underperforming assets on behalf of clients between 2017-2019, we have already undertaken an intensive asset management plan to improve occupancy and deliver a much higher quality collection of properties; while also delivering on behalf of our investors with these realisations. There is still more we can do and we look forward to continuing with our efforts to maximise the portfolio’s return potential as asset manager.”
Pierre Leocadio, Head of Investments, Europe at Oxford Properties, commented: “Copenhagen and Paris, where the majority of these portfolios are located, benefit from large economies and a stable demand base, as well as central locations in European supply chains which are themselves of increasing importance post COVID. As e-commerce penetration accelerates, well located logistics space continues to be both constrained and in high demand, supporting our conviction in the asset class in key markets globally.”