M7 and Centerbridge launch European Industrial Outdoor Storage JV

M7 Real Estate (“M7”), an active pan-European investor and asset manager, and Centerbridge Partners (“Centerbridge”), the global alternative investment manager, have launched a €250 million joint venture (the “JV”) targeting the Industrial Outdoor Storage (”IOS”) sector in Continental Europe.

Industrial Outdoor Storage assets provide occupiers from a range of industries, such as logistics, manufacturing, and construction, with space for the storage of goods, vehicles, building materials, containers and/or equipment.

The JV will target IOS assets in urban areas with high industrial and logistics activity, strong transportation connections and large population catchments across Denmark, France, Germany, the Netherlands and Spain, implementing asset management strategies to generate value.

M7 and Centerbridge have closed two acquisitions and have signed a third for a total of about €30 million. The assets, which are situated in Paris and the Triangle Region of Denmark, provide a total of c. 94,000 sqm of space, including c. 64,000 sqm of IOS area and c. 30,000 sqm of warehouse space. The assets are currently partially occupied by three tenants with an opportunity to lease up vacant space, as well as undertake refurbishments at two buildings and expand the IOS area.

Miles Chuter, Director at M7 Real Estate, commented: “Industrial Outdoor Storage is emerging as a high growth subsector of the industrial and logistics market in Europe, underpinned by the expansion of e-commerce and consolidation of global supply chains. There has been a significant level of demand from occupiers for this space in the UK, and we expect European markets to follow a similar trend. M7 and Centerbridge have identified an opportunity to be an early mover in this subsector in Europe, with ambitions to create a scalable institutional platform. The JV will combine our deep on-the-ground knowledge and asset management expertise across Europe with Centerbridge’s experience in the US and UK IOS markets to capitalise on this subsector’s strong fundamentals and target attractive returns.”

Nicolas Papamichael, Managing Director at Centerbridge, commented: “We are excited to extend our longstanding partnership with M7 to invest in a sector that benefits from uniquely strong fundamentals. Our experience from existing IOS investments in the US and the UK, alongside M7’s pan-European presence and strong asset management capabilities, positions us well to build a market-leading IOS portfolio in Europe.”