Oxford Properties invests €360m in Danish, French logistics

Oxford Properties has bought €360m worth of logistics and industrial assets in Denmark and France from M7 Real Estate funds.

Oxford Properties said it has bought a 223,800sqm Danish portfolio, comprising 27 assets and a 169,000sqm French portfolio of the 30 assets. The Danish acquisition represents the global real estate manager’s first acquisition in the Nordics.

Across both portfolios there is significant opportunity to drive further value from the assets through “active asset management to modernise the properties, improve occupancy, strengthen the income profile of the portfolios and increase the sustainability performance of the assets, the manager said.

M7 will continue to asset manage the portfolios on behalf of Oxford Properties.

James Boadle, the head of logistics and residential, Europe at Oxford Properties, said: “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.”

David Ebberell, the CEO of M7 Real Estate, said: “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, the head of investments, Europe at Oxford Properties, said 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.”

Oxford Properties said logistics now represents the largest allocation of Oxford’s capital within its global real estate portfolio.

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