M7 signs major 26,500 sq m logistics renewal with Kellanova in Spain

M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that it has signed a lease renewal for c. 26,500 sq m of logistics space in Valls-Tarragona, a prime logistic corridor in Spain, to Kellanova, a leader in global snacking and international cereal.

Kellanova has signed a 5-year lease renewal to occupy the entire warehouse which will remain a key distribution hub. This renewal retains the occupancy of 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, at 100%.

M7 undertook an active asset management strategy to upgrade the sustainability performance of the asset, which is targeting an improved BREEAM ‘Very Good’ rating, as well as integrating Oxford Properties’ green clause initiatives to upgrade the space including data sharing, tenant alterations and waste management.

Situated in Valls-Tarragona, the property is strategically located in the middle of the Mediterranean industrial corridor, benefitting from excellent connectivity to transport links and infrastructure.

Since the portfolio was acquired, M7 has completed three leases and one renewal totalling more than 60,000 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: “We identified an opportunity to leverage our asset management expertise by carrying out sustainability-focused improvements at the property, supported by Oxford’s green clause initiatives. Subsequently, we have been able to fully re-let the space on a long lease, reflecting M7’s ability to capture the current interest we are witnessing from occupiers for high quality, well-located logistics assets in the North and East of Spain which face an acute lack of supply.”