M Core, a pan-European investment and asset management platform with a portfolio exceeding €7bn, has entered a €500m joint venture with Hermes Properties, the Spanish developer backed by JJ Matriz Capital, to develop retail parks and long-let supermarkets across Spain and Portugal.
The JV will target food-anchored retail parks and standalone supermarket schemes, predominantly pre-let to global operators such as Lidl, Aldi and Decathlon. With inflation-linked leases and consumer-focused formats, these assets provide stable, long-term returns that continue to outperform traditional high street retail, making them especially appealing to institutional investors. The venture plans to deploy the capital over five years through a vehicle where both parties will co-invest.
Sebastian Macdonald-Hall, Chief Investment Officer at M Core, said: "We are really pleased to announce this strategic partnership with Hermes aligns with our commitment to developing food-anchored retail parks that combine quality retail with essential services. By leveraging Hermes' expertise in retail development alongside our approach to enhancing local markets, we aim to deliver vibrant, accessible shopping destinations tailored to evolving consumer needs."
Under the agreement, M Core will provide capital and asset management through its Spanish platform, while Hermes will lead sourcing, development and leasing via a dedicated management agreement. This structure will allow for faster site activation and delivery of modular, ESG-aligned projects, an area where Hermes has an established track record.
Benjamin Lee, Group CFO at M Core, added: “This joint venture is a strategic move in line with our ambitions to scale up our commitment to Iberia with high-quality, income-producing assets that meet rigorous investment criteria. Hermes brings development track-record and deep local knowledge, which perfectly complement M Core’s capital and long-term vision and existing asset management capability.”
This move builds on M Core’s existing regional partnership with Stephen Newman and Simon Blaxland, which has already facilitated over €175m in standing asset acquisitions across Iberia. For developers and landowners, this new JV signals a rare opportunity to align with a long-term capital partner seeking shovel-ready retail development sites with clear zoning and anchor interest.
Juan Criado Docando, Managing Partner at Hermes Properties, commented: “We are thrilled to partner with M Core, whose investment ethos and scale match our ambitions for sustainable, high-performing real estate across Iberia. This collaboration allows us to accelerate our development pipeline while retaining our commitment to design-led, tenant-driven schemes.”
People mentioned:
Sebastian Macdonald-Hall – Chief Investment Officer, M Core
Benjamin Lee – Group Chief Financial Officer, M Core
Juan Criado Docando – Managing Partner, Hermes Properties
Stephen Newman – Partner (existing M Core Iberian platform)
Simon Blaxland – Partner (existing M Core Iberian platform)
Companies mentioned:
M Core – Investor, asset manager, JV lead
Hermes Properties – Developer, JV partner
JJ Matriz Capital – Parent company of Hermes Properties
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