Oxford swoops on €360m of Danish and French sheds

Global real estate investor Oxford Properties Group has acquired two portfolios containing a combined 57 urban logistics and light-industrial assets from funds managed by M7 Real Estate for €360 mln.

The investment progresses Oxford’s plan to deploy greater capital into higher conviction investment strategies. M7 Real Estate will continue to asset manage the portfolios on behalf of Oxford, as part of Oxford’s strategy to back and build businesses with world class management teams.

James Boadle, 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.'

The 223,800 m2 Danish portfolio, comprising 27 urban logistics and light industrial assets, is Oxford’s first acquisition in the Nordics. By value, 50% of the portfolio is located in Greater Copenhagen with a further 22% in Denmark’s Triangle region.

The occupier base is well diversified across some 75 tenants, with the majority operating in the transport & distribution (3PL), e-commerce & retail and manufacturing sectors.

The French portfolio comprises 169,000 m2 of urban logistics and light-industrial space, with the large majority of the 30 assets located in the Greater Paris area and the remainder situated along the north-south logistics corridor through central France.

The income streams are well diversified, underpinned by 120 occupiers ranging from SMEs to large corporations.

'These acquisitions provide immediate scale in France and make our first investment into the Nordics, a region with strong market fundamentals, where we continue to look for further opportunities. With M7 continuing to asset manage the properties, we are well positioned to drive value at these assets,' Boadle added.

Across both portfolios Oxford said there was 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.

As a result of its investment activity over recent years - including last month’s purchase of a $2.2 bn (€1.9 bn), 149-asset US light-industrial portfolio from KKR - logistics now represents the largest allocation of Oxford’s capital within its global real estate portfolio.