8 Mar 2024

M7 fully lets c. 7,000 sq m industial and logistics asset in Vila Franca de Xira, to AGITO Global

Savills Portugal advised M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that it has let c. 7,000 sq m of industrial warehouse and office space in Vila Franca de Xira, to AGITO Global, a global provider of automation and technology solutions into the warehousing, eCommerce, logistics, food and beverage industries, and a joint venture partner of Hilton Food Group.

AGITO Global has signed a 10-year lease for the space on favourable terms, which will serve as its UK and EU manufacturing facility, software support hub and headquarters in Portugal. As well as its key location in one of the most sought-after logistics corridors in the country and significant industrial and office space, M7 undertook an active asset management strategy to upgrade the specifications of the asset which allowed the building to be used for industry.

The property is strategically located in Vila Franca de Xira, a prime logistics hub only 40 kilometres north of Lisbon, benefitting from strong submarket fundamentals and excellent arterial connectivity. It offers direct access to the N1, as well as the nearby A1 and A10 highways junctions, providing links to Portugal’s wider motorway network.

João Salema Garção, Senior Asset Manager of M7 Real Estate in Portugal, commented: “There is a severe shortage of logistics space surrounding the Portuguese capital which has enabled M7 to capitalise on positive supply and demand dynamics, signing a long-term lease with advantageous terms to a strong covenant. Despite macro-economic headwinds, we continue to see robust occupational demand for well-located assets in urban areas, underpinning our sector conviction in this market.”

Luís Rocha, I&L Senior Consultant, Savills Portugal, mentioned: “Completing this operation took more than a year and, and in the decision process, factors such as the characteristics of the property, a very different time zone and the respective negotiation conditions were weighed, which forced us to demonstrate even greater perseverance, already characteristic from the Savills Industry & Logistics team. Supporting M7 in placing this distinct asset with an Australian multinational of automation and technology solutions in its global expansion, through the placement of its Portuguese subsidiary in this asset, is, for us, very gratifying.”

Emma Townsend, CEO of AGITO Global commented: “Our recent global expansion meant that we needed an EU manufacturing facility, and Portugal was the obvious choice – offering both a skilled workforce and excellent trade routes into the EU, UK and North America. Working with M7 and Savills to secure this property has set our business up for growth – we have already started manufacture and supply for our key customers, and we plan to further expand the local engineering team.”