M7 Real Estate, acting on behalf of Oxford Properties and AustralianSuper, has completed the acquisition of 31 urban infill and mid-box logistics assets across the UK and France, marking a significant milestone in the European Supply Chain Investment Partnership's (ESCIP) growth trajectory. The portfolio, previously managed by Mileway under Blackstone's ownership, spans approximately 223,000 m² of prime logistics space in high-demand metropolitan areas including Manchester, Leeds, Milton Keynes, Paris and Lyon.
The transaction propels ESCIP past the critical 1.1 million m² threshold, with the joint venture now controlling 116 prime logistics assets totalling over €1.4bn in gross asset value. This represents €600m of capital deployed across 40 assets comprising 390,000 m² in the past 12 months alone, demonstrating aggressive expansion in a sector where urban infill opportunities are increasingly scarce. Industry analysts note that the timing is particularly strategic, as vacancy rates in tier-one European logistics markets have compressed to historic lows. Supply constraints are expected to intensify through 2026 as e-commerce penetration deepens, and last-mile delivery networks require denser urban footprints.
David Ebbrell, CEO at M7 Real Estate, stated: "With this acquisition, we have secured a high-quality portfolio of well-located logistics assets into ESCIP, which adds 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, commented: "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 €1.4bn 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."
The portfolio offers immediate value creation opportunities through active asset management, near-term rental reversion and ESG upgrades, positioning M7 to capitalise on what industry insiders describe as a "landlord's market" where occupier demand significantly outstrips available supply. For developers, the transaction signals renewed institutional appetite for mid-box logistics in urban locations, with yield compression in this subsector expected to continue as capital chases limited stock. The deal also highlights the growing sophistication of logistics-as-infrastructure plays, with pension funds like AustralianSuper increasingly viewing European last-mile assets as long-duration, inflation-protected income streams comparable to social housing or regulated utilities.
People mentioned:
- David Ebbrell, CEO, M7 Real Estate
- Alicia Peters, Vice President, Oxford Properties
- Matthew Fidge, Investment Director, AustralianSuper
Companies mentioned:
- M7 Real Estate, pan-European investor and asset manager
- Oxford Properties Group, global real estate investor and developer
- AustralianSuper, pension fund
- Blackstone, private equity firm
- Mileway, logistics property manager
