Under the terms of the agreement, M Core and Hermes Properties will combine their capital, expertise, and operating platforms to develop, and manage new investment opportunities in line with a clear set of investment parameters. The joint venture is expected to deploy up to €500 million over five years.
M Core, known for its long-term, income-focused investment approach backed by a multi-generational family office, will bring capital and asset management expertise to the partnership. Hermes Properties, with a proven track record in development and local market execution, will be responsible for sourcing opportunities and leading development and leasing efforts.
The partnership will focus on:
- Retail park development, targeting schemes with global anchor tenants such as Lidl, Aldi, or Decathlon, and the majority of income pre-let.
- Standalone long-let supermarket developments with dominant grocery or essential retailers.
Projects will be delivered through a joint venture vehicle structure, with Hermes Properties co-investing alongside M Core. Hermes will lead the development through a dedicated management agreement. M Core’s local management platform in Spain will manage the completed assets.
Sebastian Macdonald-Hall, Chief Investment Officer at M Core, commented: “We are really pleased to announce this strategic partnership with Hermes aligns with our commitment to developing food-anchored retail parks that combine quality retail with essential services. By leveraging Hermes’ expertise in retail development alongside our approach to enhancing local markets, we aim to deliver vibrant, accessible shopping destinations tailored to evolving consumer needs. This initiative supports our shared vision of transforming the retail landscape in Iberia and creating lasting value for communities and stakeholders alike. “
Commenting on the agreement, Benjamin Lee, Group CFO of M Core, said: “This joint venture is a strategic move in line with our ambitions to scale up our commitment to Iberia with high-quality, income-producing assets that meet rigorous investment criteria. Hermes brings development track-record and deep local knowledge, which perfectly complement M Core’s capital and long-term vision and existing asset management capability.”
Juan Criado Docando, Managing Partner at HermesProperties, added: “We are thrilled to partner with M Core, whose investment ethos and scale match our ambitions for sustainable, high-performing real estate across Iberia. This collaboration allows us to accelerate our development pipeline while retaining our commitment to design-led, tenant-driven schemes.”
This partnership represents a significant milestone in the continued expansion of both M Core and Hermes across Iberia, reinforcing their commitment to delivering modern, sustainable retail infrastructure tailored to evolving consumer needs.
For M Core, this joint venture builds on the success of its existing partnership with Stephen Newman and Simon Blaxland focussed on standing assets, which has already facilitated over £150 million of investments to date in standing acquisitions throughout the region. As active investors and developers, M Core is committed to high-quality, long-term Spanish retail assets that drive economic resilience and consumer accessibility.
