M7 sells two retail warehouses in off-market deal in Germany

Pan-European investor and asset manager M7 Real Estate has capitalised on the strong market appetite for income-producing properties by selling two retail warehouses in the Hesse region of Germany to a fund managed by Mimco Capital. 

The assets were sold in an off-market deal on behalf of M7 European Real Estate Investment Partners and M7 European Real Estate Investment Partners IV, which form part of M7’s pan-European value add fund series.

The properties are located in Michelstadt and Ober-Mörlen near Frankfurt am Main and are 100% let to supermarket chains Edeka and Rewe respectively. They comprise a total of around 6,600 m2 of GLA.

Since acquiring the assets in 2016 (Ober-Mörlen), and 2017 (Michelstadt), M7 has extended the leases on both properties, increasing the combined WALT to six years. 

Richard Fletcher, director of transactions for Germany at M7 Real Estate, commented: ‘This sale follows the conclusion of our asset management strategy for each building and is in line with our business plan.

‘Investor appetite for properties producing long and secure income is very strong, so with lease extensions agreed on both properties, the portfolio presented an attractive package with positive cash flow at a more attractive entry point to more core investments.’

Peter Wenzel, managing director, Germany, at M7 Real Estate, added: ‘Germany remains a key market for M7 and we have ambitions to grow significantly, deploying capital on behalf of our clients into core + and value add opportunities with a focus on the light industrial, logistics and e-warehousing sectors.’

M7 has been active in Germany since 2014, where it has transacted a total of €2 bn of acquisitions and disposals since entering the market. The company’s portfolio totals 420,000 m2 of industrial, offices and retail warehouse assets across 11 markets including Hamburg, Rhein-Main and Rhein Ruhr conurbations.

M7 was advised on the deal by Simmons & Simmons, Gleeds and Nova Ambiente. K&L Gates acted for the buyer.


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