The fund is looking to capitalise on “one of the most compelling sector opportunities” in European real estate.
AustralianSuper and real estate investor Oxford Properties Group have announced a strategic partnership to build a significant industrial and logistics venture across Europe.
Namely, Australia’s largest super fund has acquired a 50 per cent stake in Oxford’s approximately $1.4 billion European industrial and logistics portfolio and in M7 Real Estate, the European investment and asset management business that was acquired by Oxford in 2021.
The joint venture, the first between the two companies, will provide further capital to fund the growth of the portfolio – the European Supply Chain Income Partnership (ESCIP) – with a target of up to $7.5 billion gross asset value.
In a joint statement, the companies said that the portfolio comprises some 730,000 square metres of urban logistics and distribution warehouses across 76 assets, located in 19 urban “last mile” and distribution hubs in the UK, Denmark, France, Germany, the Netherlands, and Spain.
Moreover, M7 Real Estate will be sourcing and executing on new opportunities for the strategy, targeting income-led exposure across the pan-European supply chain.
Commenting on the partnership, Paul Clark, head of European real assets at AustralianSuper, said the fund believes that urban logistics and distribution represents “one of the most compelling sector opportunities in European real estate today”.
“We are delighted to partner with the Oxford and M7 teams, investors with proven track records operating and growing high-quality logistics portfolios, to scale the ESCIP platform together using our collective expertise, generating long-term performance for members,” Clark said.
On Tuesday, AustralianSuper and Oxford said that the portfolio is around 90 per cent occupied and delivers a diverse and defensive income stream secured against 214 tenants, across a range of business types and geographies.
The companies also said that no single tenant represents more than 5 per cent of the total in-place rent.
David Ebbrell, CEO of M7 Real Estate, welcomed the partnership with AustralianSuper.
“Not only is AustralianSuper’s investment into our business another huge endorsement of M7 Real Estate’s team, its expertise and long track record of creating value, the support of Australia’s largest superannuation fund also brings with it a commitment to invest significantly through our platform alongside Oxford Properties into the European industrial and logistics sector over the next few years, helping us achieve our own ambitions for growth,” Ebbrell said.
AustralianSuper’s global real assets portfolio totals some $56 billion, including more than $10 billion invested in Europe.
Within industrials, the fund has invested in Moorebank Logistics Park, Australia’s largest intermodal logistics facility; the Craigieburn Logistics Estate housing a new Amazon Robotics Fulfilment Centre in Australia; and the Wiri Logistics Estate in New Zealand.
