Pan-European investor and asset manager M7 Real Estate has recently completed the acquisition of €140 mln of assets on behalf of M7 European Real Estate Investment Partners IV (M7 EREIP IV), its largest fund to date, with a further €35 mln of assets expected to complete over the summer.
The acquisitions comprise 68 assets and are being purchased through a combination of portfolio and individual transactions, totalling 331,000 m2 across Denmark, Germany and the Netherlands.
The fund’s final close was in November 2017 which saw a total of €400 mln raised from investors in the US, Hong Kong and Middle East, amongst other locations.
'Fully investing M7’s largest fund to date will mark a major milestone for us,' said Richard Croft, chief executive of M7 Real Estate.
'Since completing the fund’s final close, M7 has demonstrated its capability to leverage its pan-European investment and asset management platform to successfully deploy investor capital into an identified pipeline of income-producing, value-add real estate.'
According to the firm, the final acquisitions will create total assets under management (AUM) for the fund of approximately €800 mln invested in high-yielding, value-add regional real estate in Scandinavia, Germany, Ireland and the Netherlands.
The total portfolio, which will be managed by M7 through its pan-European platform, will comprise 1.3 million m2 across 212 multi-let office and industrial assets with a weighted average lease term of 4.2 years and a vacancy of 17.1%. M7 said it had identified a number of asset management initiatives to improve the occupancy, performance and value of the portfolio.