Pan-European investor M7 Real Estate has added 19,000sqm last mile logistics in Frankfurt to its German portfolio.
The Raiffeisenstraße 5-7 asset was acquired on behalf of the European Supply Chain Income Partnership (ESCIP), a pan-European industrial and logistics vehicle backed by M7’s parent Oxford Properties and AustralianSuper, Australia’s largest superannuation fund.
M7 has acquired the fully occupied asset for an unspecified amount, with plans to create value through a sustainability-led refurbishment
The 2015-built, 10-unit asset is fully occupied, with the short weighted average unexpired lease term of 2.3 years presenting an attractive opportunity to capture reversionary potential, M7 said. The latest deal in Germany marks M7’s fourth investment for the ESCIP platform, following one in France and two in the UK. M7 expects to expand the platform across key European logistics markets, targeting €3.5bn in portfolio growth over the next three to five years.
John Pow, managing director at M7 Real Estate, said: “We have a strong conviction in the urban logistics market in Germany, particularly in infill markets such as Frankfurt, which remains significantly supply-constrained and has experienced strong prime rental growth over the last five years.
“This asset, which is already income producing and presents a compelling value add opportunity, plays to M7’s long-standing expertise in this space and presence on the ground.
“ESCIP remains in growth mode and our team remains focused on actively pursuing additional investments, underpinning our strong conviction in the industrial and logistics sector, including in strategic locations in Germany.”
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