AustralianSuper, Australia’s largest super fund, has partnered with Oxford Properties Group, a global real estate investor, to create a major industrial and logistics venture in Europe. The venture will be managed by M7 Real Estate.
AustralianSuper has purchased a 50 per cent share in Oxford’s €840 million European industrial and logistics portfolio, as well as in M7 Real Estate, a leading European investment and asset management firm acquired by Oxford in 2021.
This joint venture, the first between AustralianSuper and Oxford, combines two global institutional investors managing a total of €270 billion in long-term capital for over four million pension fund members.
The partnership will provide further capital to fund the growth of the Portfolio, known as the European Supply Chain Income Partnership (“ESCIP”), with a target of up to €4.5 billion GAV of high-quality ‘last mile’ and mid-box warehouses over the next three to five years.
“We believe urban logistics and distribution represents one the most compelling sector opportunities in European real estate today, and have been tracking the sector for several years to find the right portfolio that meets our ambitions, with strong fundamentals and significant growth potential,” says Paul Clark, Head of European Real Assets at AustralianSuper.
“We are delighted to partner with the Oxford and M7 teams, investors with proven track records operating and growing high-quality logistics portfolios, to scale the ESCIP platform together using our collective expertise, generating long-term performance for members.”
The Portfolio currently comprises c.730,000 sqm high-quality urban logistics and distribution warehouses across 76 assets.
M7 Real Estate will manage the portfolio, focusing on finding new investment opportunities across Europe. The strategy will target income-generating assets, with a focus on smaller, multi-tenanted properties near major cities and larger warehouses in key logistics areas.
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