M7 Real Estate (M7) has completed the sale of a portfolio of five logistics parks across Hungary in what is believed to be the largest logistics transaction by GLA in Hungary in 2019.
The sale was completed on behalf of M7 Central European Real Estate Fund I (CEREF I). The name of the buyer was not disclosed.
The 84,000 m2 portfolio, which includes three assets in Budapest, one in Eger and another in Pécs, was assembled by M7 in three separate transactions during 2016 and 2017. M7 has since enhanced the performance of these assets and reduced vacancy by implementing a targeted €4.6 mln capex programme and new marketing strategies.
As a result of this activity, the average occupancy of the portfolio has increased from 63% on acquisition to 94%, whilst the total rental income has grown by 60%. In addition, the weighted average lease term of the portfolio has almost doubled to three years.
In a separate transaction, M7 also announces the disposal of the Atom Centre, a 2,614 m2 retail park, in Paks.
'M7 acquired the assets in this portfolio as part of the CEREF I fund, from three different sellers. We have subsequently worked closely with our partners to implement our strategy for the portfolio, leveraging our asset management expertise, improving occupancy by 28,500 m2,' said Balázs Magyar, MD Hungary at M7. 'Having successfully finished our asset management plan and created an institutional quality core plus portfolio, we made the decision to complete our business plan ahead of schedule, through this sale. This transaction, together with the sale of the Atom Centre, has allowed us to generate attractive returns for our investors.'
M7 was advised by Colliers.