Key Takeaways
- • M7 Real Estate acquired a 19,000 sq m last-mile logistics asset in Frankfurt (Raiffeisenstraße 5-7) on behalf of the European Supply Chain Income Partnership (ESCIP), a joint venture backed by Oxford Properties and AustralianSuper, demonstrating continued expansion in supply-constrained German urban logistics markets.
- • The Frankfurt asset, constructed in 2015 and 100% occupied by seven tenants including Volkswagen and BorgWarner, offers value-add upside through sustainability-led refurbishment including solar panel installation and rental reversion capture with a weighted average unexpired lease term of 2.3 years.
- • M7 manages 200,000 sq m of urban logistics space across Germany with a 15-year operating track record in the region, and ESCIP has now executed four investments targeting €3.5 billion in portfolio growth over the next three to five years.
- • The ESCIP platform now owns and manages over 12 million sq ft across 116 prime European logistics assets valued at approximately €1.4 billion, with €600 million deployed during 2025 and momentum intended to continue through 2026.
- • M7 and PGIM Real Estate have separately launched a €100 million value-add German logistics joint venture, with two assets already acquired for over €40 million, focusing on repositioning opportunities in prime German locations.
Summary
M7 Real Estate announced the acquisition of a high-quality last-mile urban logistics asset in Frankfurt as part of its continued expansion across German supply-constrained markets. The property at Raiffeisenstraße 5-7 comprises approximately 19,000 sq m of space constructed in 2015 across 10 units, currently 100% occupied by seven tenants including major industrial names Volkswagen and BorgWarner. The acquisition was completed on behalf of the European Supply Chain Income Partnership (ESCIP), a pan-European industrial and logistics investment vehicle structured as a joint venture between Oxford Properties and AustralianSuper, Australia's largest superannuation fund.
The Frankfurt asset presents a compelling value-add thesis. The portfolio exhibits a weighted average unexpired lease term of 2.3 years, providing M7 with meaningful reversionary upside as leases expire and market rents are captured. M7 plans to enhance value through a sustainability-focused refurbishment program, including solar panel installation, which aligns with institutional investor ESG mandates. John Pow, Managing Director at M7 Real Estate, noted the firm's conviction in German urban logistics markets, particularly infill locations like Frankfurt, which remain supply-constrained and have experienced strong prime rental growth over the preceding five years.
M7's German market position has solidified significantly over its 15-year operating history. The firm currently manages 200,000 sq m of urban logistics space across the region, positioning it as a substantial operator in the market. This Frankfurt acquisition represents the fourth investment execution under the ESCIP platform, which has scaled to over 12 million sq ft across 116 prime European logistics assets with an estimated value of €1.4 billion. Management has articulated an aggressive growth mandate, targeting €3.5 billion in portfolio additions over the next three to five years, with €600 million deployed during 2025 alone.
Separately, M7 and PGIM Real Estate launched a €100 million value-add focused joint venture targeting industrial and logistics assets across Germany. To date, the partnership has acquired two assets for over €40 million, including a property in Mulheim with leasing upside and a multi-unit logistics park in Munster structured via sale-leaseback. The joint venture focuses on assets requiring repositioning through redevelopment and leasing, capturing value from market corrections that have created historic entry points in European real estate while maintaining selective capital deployment discipline.
The Frankfurt asset presents a compelling value-add thesis. The portfolio exhibits a weighted average unexpired lease term of 2.3 years, providing M7 with meaningful reversionary upside as leases expire and market rents are captured. M7 plans to enhance value through a sustainability-focused refurbishment program, including solar panel installation, which aligns with institutional investor ESG mandates. John Pow, Managing Director at M7 Real Estate, noted the firm's conviction in German urban logistics markets, particularly infill locations like Frankfurt, which remain supply-constrained and have experienced strong prime rental growth over the preceding five years.
M7's German market position has solidified significantly over its 15-year operating history. The firm currently manages 200,000 sq m of urban logistics space across the region, positioning it as a substantial operator in the market. This Frankfurt acquisition represents the fourth investment execution under the ESCIP platform, which has scaled to over 12 million sq ft across 116 prime European logistics assets with an estimated value of €1.4 billion. Management has articulated an aggressive growth mandate, targeting €3.5 billion in portfolio additions over the next three to five years, with €600 million deployed during 2025 alone.
Separately, M7 and PGIM Real Estate launched a €100 million value-add focused joint venture targeting industrial and logistics assets across Germany. To date, the partnership has acquired two assets for over €40 million, including a property in Mulheim with leasing upside and a multi-unit logistics park in Munster structured via sale-leaseback. The joint venture focuses on assets requiring repositioning through redevelopment and leasing, capturing value from market corrections that have created historic entry points in European real estate while maintaining selective capital deployment discipline.
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