Canada-based Oxford Properties Group have made their first property purchases in Spain in the last two quarters. The purchases involve three transactions covering seven assets, all in the logistics sector in Barcelona, Bilbao and Tarragona. A total of 90,000 square metres has been acquired through subsidiary company M7 Real Estate, which is engaged in investment and asset management in Europe, specialising in multi-tenant properties.

The entry of a new player in the logistics assets property market in Spain consolidates international interest in this sector. Oxford's arrival is especially aligned with their strategy of increasing exposure to urban logistics assets in key distribution locations with constrained supply dynamics.

Key logistics centres
The seven assets, acquired during the second and third quarters of this year with attractive financing terms, total 90,000 square metres. They are all located in the main logistics centres of Barcelona, Bilbao and Tarragona, with good links to transport networks.

The first portfolio comprises five properties in Barcelona and Bilbao, totalling 60,000 square metres and located some 20 kilometres from the city centres. Four of them are wholly occupied by companies on long-term leases. A complete refurbishment is planned for the fifth with a view to market repositioning.

Sustainability performance
The second portfolio comprises a 26,000-square metre warehouse leased to Kellogg's. Located in Tarragona, it has direct access to all the main transport routes. The final asset is located in Santa Perpetua, 16 kilometres from the centre of Barcelona and spanning 3,100 square metres.

M7 will be in charge of managing these assets, pursuing a strategy that aims to improve sustainability performance in order to achieve higher BREEAM and EPC ratings. To achieve this, they have the backing of Oxford, which has already invested €1.8 billion since acquiring the company in 2021.

Annual CPI increases
M7 Real Estate CEO, David Ebbrell, explained, “Oxford has entered the Spanish market for the first time and has added seven very well-located urban logistics assets to its portfolio in the supply constrained markets of Barcelona, Bilbao and Tarragona, all bar one of which benefit from uncapped annual CPI increases, and providing a hedge in the current inflationary environment”.

James Boadle, Senior Vice President, Europe at Oxford Properties, added, “The insight and local expertise brought by M7 has enabled us to make our first investments in Spain as we expand our European logistics platform, with a focus on assets that will continue to deliver strong returns to our members in this current macro-economic backdrop”.

^{Photo: M7 Real Estate}