Oxford Properties is negotiating purchase of M7 Real Estate

Oxford Properties is negotiating purchase of M7 Real Estate

The M7 Real Estate’s portfolio consists of 830 assets, spread across the United Kingdom (the company’s country of origin) and 12 other European countries, amongst which Portugal. This portfolio has a total combined area of 67.5 million sqm and is estimated at 5.3 billion euro (in line with Oxford Properties’ offer).

The news was advanced by Eje Prime which further revealed that the companies are negotiating exclusively. IPE Real Assets added that for M7 RE this transaction «would facilitate the continued growth of the M7 Real Estate platform across Europe». Nevertheless, the British management company did not confirm the identity of the potential buyer. Iberian Property tried to contact the parties involved, but until the news was reported there had been no response.

It is known that Oxford Properties is the global real estate arm of Canada’s OMERS pension fund and that it is specialised in entering the capital of real estate companies with a high potential for growth. It was founded in 1960 and currently has a diversified portfolio (office, retail, industrial, hotels, multifamily) estimated at more than 49.45 billion euro.

More than €175M in Portugal

Portugal is amongst the 12 European countries where M7 RE has investments. Holland, France, Denmark, Sweden, Germany, Poland, Finland, Ireland, Hungary, Czech Republic and Croatia are the remaining 11.

At the end of September, M7 Real Estate owned 35 assets in Portugal estimated at 175 million euro, mostly located in Lisbon (65%) and Porto (25%). Logistic is the company’s main bet in Europe and in Portugal as well since it represents 57% of all its Portuguese portfolio. Offices represent 23% and retail 20%.

This portfolio grew again in November with the incorporation of 10 more commercial assets, in a deal carried out by the Portuguese Industrial Fund which represented a 41 million euro investment. Within this set of assets, which have a total combined area of 85.600 sqm, are 5 last-mile logistic assets, mainly located in Lisbon and Porto; 3 office buildings in Lisbon, 2 retail warehouses in the Greater Lisbon area and in Madeira.

The rapid growth of e-commerce should have reinforced the company’s interest for the country’s logistic segment even more, and a «strong increase in demand for warehouses, close to urban centres is expected», highlighted M7 RE in a release. Under this scenario, both logistics and retail parks which are «historically less valued» may have a «very interesting potential for increased valuation», stated Leonardo Peres, Managing Director at M7 RE, during the opinion forum carried out by magazine Iberian Property.

Opportunities wanted in Spain

Spain is not a part of M7 RE’s list of investments, but it is under its radar. And (almost) everything is ready to carry out the first operations within the country.

In June, daily newspaper Eje Prime reported that the British company had already rented its first office in the country – at number 14 Calle Velázquez in Madrid - and also nominated its representative Álvaro Arteaga Biforcos, according to Property EU.

As advanced by David Ebbrell the company’s CEO, to the Spanish daily newspaper, M7 RE is now seeking «investment and asset management opportunities in Madrid and Barcelona, and also in other markets such as Malaga, the Basque Country, Valencia and Seville».

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