26 Oct 2023
M7 reaches full occupancy across 90,000 sq m urban logistics portfolio in Spain with c. 8,500 sq m letting to Belgicast International
M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that it has let c. 8,500 sq m of industrial warehouse space in Lezama, Spain, to Belgicast International by AVK Holding, a European leader of water management. This new lease brings the c. 90,000 sq m urban logistics portfolio in Spain, which M7 compiled in 2022 on behalf of Oxford Properties Group (“Oxford”), a leading global real estate investor, developer and manager, to 100% occupancy.
Belgicast International has signed a 15-year minimum lease for the space which will serve as its headquarters as well as a key distribution hub in the highly sought after market of the north and east of Spain. M7 undertook an active asset management strategy to upgrade the sustainability performance of the asset, targeting an improved BREEAM ‘Very Good’ rating, as well as value-add capital expenditure initiatives to upgrade the space.
Situated in Lezama, the property is strategically located 20 km from the Port of Bilbao, a hub port in the centre of the Atlantic, benefitting from excellent connectivity to transport links and infrastructure.
Since the portfolio was acquired, M7 has completed three leases totalling 40,000 sq m across buildings in prime logistics hubs within the three key cities of Barcelona, Bilbao and Tarragona, demonstrating the strength of occupier demand.
Alvaro Arteaga, Managing Director – Spain at M7 Real Estate, commented: “This latest letting demonstrates the ongoing strength of the urban logistics market in key distribution locations across Spain, which face an acute lack of supply. We identified an opportunity to leverage our asset management expertise by carrying out sustainability-focused improvements across the portfolio to increase the attractiveness of the individual assets to potential occupiers. Subsequently, we have been able to fully let the portfolio, reflecting M7’s ability to capture the current interest we are witnessing from occupiers for high quality, flexible logistics assets, underpinning our sector conviction in this market.”