M7 expands German logistics portfolio with Frankfurt last-mile acquisition
M7 Real Estate has acquired a 19,000 sq m last-mile urban logistics asset in Frankfurt, continuing the expansion of its German portfolio.
The property at Raiffeisenstraße 5–7 was built in 2015 and comprises 10 high-specification units. It is fully let to seven tenants, including Volkswagen and BorgWarner, with a weighted average unexpired lease term of 2.3 years, offering potential for rental growth. M7 plans to enhance the asset through a sustainability-focused refurbishment programme, including the installation of solar panels.
The acquisition was made on behalf of the European Supply Chain Income Partnership (ESCIP), a pan-European industrial and logistics investment vehicle backed by a joint venture between Oxford Properties and AustralianSuper.
The Frankfurt deal marks ESCIP’s fourth investment across the UK and Europe as M7 continues to scale the platform across key logistics markets, targeting €3.5 billion of portfolio growth over the next three to five years. M7 has operated in Germany for more than 15 years and currently manages around 200,000 sq m of urban logistics space in the country.
John Pow, Managing Director at M7 Real Estate, commented: “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.”
