M7 Real Estate, a pan-European investment and asset management firm, has formalised the lease of an 8,500 square metre logistics warehouse in Lezama, Bizkaia, to Belgicast International (part of AVK Holding), a leading water management company in Europe. With this agreement, M7's Spanish logistics portfolio, covering approximately 90,000 square metres acquired in 2022 for Oxford Properties Group, reaches full occupancy.
Belgicast International has entered into a 15-year lease agreement and will use the facility as its headquarters and distribution centre. As part of its active management strategy, M7 has carried out major refurbishments to the warehouse to improve tenant services. These refurbishments are aimed at sustainability and the aim is for its entire portfolio to achieve BREEAM certification with a "Very Good" rating.
The property, located in Lezama, has a strategic position, being only 20 km from the Port of Bilbao, essential for its connections with other Atlantic ports and for having an extensive transport and infrastructure network.
Since M7 acquired the portfolio, it has signed leases covering 40,000 square metres, located in major logistics centres in Barcelona, Bilbao and Tarragona, underlining the robust demand for these spaces.
Álvaro Arteaga, managing director of M7 Real Estate in Spain, said: "This latest letting demonstrates the strength of the logistics market in key distribution locations in Spain, which are facing a severe shortage of supply. We identified an opportunity to leverage our asset management expertise by making sustainability-oriented improvements across the portfolio, with the aim of adding value to the assets and potential tenants. We have successfully let the entire portfolio, reflecting M7's ability to capture occupier interest in high quality, flexible logistics assets, strengthening our position in the Spanish market.