M7 Real Estate and Centerbridge Partners have formed a €250m investment partnership to target the industrial outdoor storage (IOS) sector across continental Europe.
The joint venture will seek to acquire IOS assets in urban areas with high industrial and logistics activity and strong transportation connectivity, and significant population catchments in Denmark, France, Germany, the Netherlands and Spain, the companies said.
M7 and Centerbridge said they have completed one acquisition and signed a second, totalling approximately €20m.
The assets, located in Paris and the Triangle Region of Denmark, offer a combined area of approximately 62,000sqm, including 46,000sqm of industrial outdoor storage space and 16,000 sqm of warehouse space
Miles Chuter, director at M7 Real Estate, said: “IOS is emerging as a high-growth subsector of the industrial and logistics market in Europe, underpinned by the expansion of e-commerce and consolidation of global supply chains.
“There has been a significant level of demand from occupiers for this space in the UK, and we expect European markets to follow a similar trend. M7 and Centerbridge have identified an opportunity to be an early mover in this subsector in Europe, with ambitions to create a scalable institutional platform.”
Nicolas Papamichael, MD at Centerbridge, said: “We are excited to extend our longstanding partnership with M7 to invest in a sector that benefits from uniquely strong fundamentals.
“Our experience from existing IOS investments in the US and the UK, alongside M7’s pan-European presence and strong asset management capabilities, positions us well to build a market leading IOS portfolio in Europe.”
A previous version of this article incorrectly stated that M7 and Centerbridge had completed two acquisitions and signed a third, totalling approximately €30m.
To read the latest IPE Real Assets magazine click here.
