The deal transfers ownership of 76 European logistics platforms into AustralianSuper’s portfolio through the acquisition of a 50% interest in assets managed by M7 Real Estate, with a total value of €840 million. The European logistics real estate sector continues to attract pension and sovereign funds worldwide, driven by its promising return-on-investment prospects. The growth of e-commerce, accelerated by the pandemic, and the restructuring of global supply chains due to geopolitical tensions have fuelled demand for logistics spaces, resulting in increased rental income.
The acquired portfolio encompasses 76 properties spread across Western Europe, covering approximately 730,000 square metres. The assets are located in strategic markets, including the United Kingdom, Denmark, France, Germany, the Netherlands, and Spain, with a 90% occupancy rate. The transaction aims to rapidly expand the portfolio’s value to approximately €4.5 billion within the next five years. To achieve this target, M7 Real Estate will focus on new acquisitions in the key markets already identified.
While AustralianSuper has already invested around €6 billion in European real estate, particularly in urban regeneration projects in London, this marks its first significant foray into the continental logistics sector. Paul Clark, AustralianSuper’s Head of European Property, stated: “We believe urban logistics and distribution represent one of the most exciting opportunities in European real estate and have been monitoring the market for several years.”
The deal, subject to regulatory approvals, is expected to close by the first quarter of 2025. Eastdil Secured LLC acted as an advisor to Oxford Properties, while Savills Capital Advisors supported AustralianSuper. Oxford Properties, the real estate arm of the Ontario Municipal Employees Retirement System, acquired M7 Real Estate in 2021, strengthening its reputation as a key manager for global players such as Blackstone, Starwood Capital Group LLC, and Goldman Sachs Group.
