M7 Real Estate, a European investment and asset management business owned by Oxford Properties Group and AustralianSuper, has bought a portfolio of 31 UK and French logistics assets from funds managed by Blackstone.
The portfolio, comprising 2.4 million square feet of urban infill and mid-box logistics schemes in "key metropolitan areas", was acquired through the partners' European Supply Chain Investment Partnership joint venture.
Mileway managed the portfolio when it was owned by the funds. The assets are in Manchester, Leeds, Milton Keynes, Paris and Lyon, which M7 described as "Tier 1 logistics markets underpinned by strong demand, constrained supply and robust rental growth."
Reports suggest the portfolio traded for circa €350 million to €375 million (£306.4 million) but M7 declined to confirm this, stating that it was "directly in line with ESCIP's ambition to develop its portfolio in the medium term", sister publication Business Immo has learned from corroborating sources that the sale price is €350 million. In addition, a market player familiar with the deal told us that the French portion of the portfolio is worth around €175 million and covers approximately 140,000 square metres.
"The assets offer immediate value creation opportunities for M7 to unlock through active asset management, near term rental reversion and ESG upgrades," the company added.
Following the deal, ESCIP owns and manages more than 12 million square feet across 116 prime European logistics assets. In the past 12 months it has bought 40 assets comprising around 4.2 million square feet. It brings ESCIP's assets under management to €1.4 billion gross asset value.
M7 Real Estate chief executive David Ebbrell said in a statement: "With this acquisition we have secured a high quality portfolio of well located logistics assets into ESCIP which add significant scale and income to the portfolio.
"Our local teams will undertake a number of value accretive asset management opportunities that we have identified to continue to enhance the portfolio. We are proud of the €600 million we have deployed in 2025. We intend to carry this momentum through 2026 and continue to progress with the pipeline of further opportunities we have assembled for ESCIP."
Alicia Peters, vice-president at Oxford Properties, said: "This transaction demonstrates our continued conviction in the resilience and long-term growth of the European logistics sector. By acquiring a portfolio of scale in supply-constrained urban markets, we have grown our portfolio to over 12 million square feet and €1.4 billion by value.
"The M7 team is well-positioned to deliver attractive returns through active asset management and support the continued expansion of our pan-European strategy by sourcing strong investment opportunities."
Matthew Fidge, investment director at AustralianSuper, added: "Our partnership with Oxford and M7 continues to deepen, and this strategic acquisition is the latest example of the quality of investments this partnership can deliver for AustralianSuper’s members. The portfolio’s location in key target markets, asset quality and growth potential are well aligned with our shared strategy for ESCIP."
Earlier this year, Blackstone sold a £1.04 billion logistics portfolio to Tritax Big Box, with the Solstice portfolio forming a major part of the sale, which Blackstone brought to market earlier this year seeking around £430 million.
Luc-Etienne Rouillard Lafond contributed reporting.