Savills Portugal advised M7 Real Estate (“M7”), the pan-European investor and asset manager, announcing that the company 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 & beverage industries, and a joint venture partner of Hilton Food Group.

AGITO Global has signed a 10-year lease for the space, which will serve as its UK and EU manufacturing facility, software support hub and headquarters in Portugal.  With its key location in the 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, permitting the building’s use for industry purposes.

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 road 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 at Savills Portugal, comments: “This operation took more than a year to complete, with factors such as the property’s characteristics, a very different time zone and the respective negotiating conditions weighing heavily in the decision-making process, which required us to show even greater perseverance, already characteristic of Savills’ Industry & Logistics team. Supporting M7 in placing this distinctive asset for an Australian multinational automation and technology solutions company in its global expansion by placing its Portuguese subsidiary in this asset is very gratifying for us.”

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.”