DaRE, the joint venture established by M7 Real Estate and funds managed by Oaktree Capital Management, L.P. (Oaktree) to invest in higher-yielding light industrial properties in the Nordic region, has acquired seven assets in Denmark for DKK232.6 mln (approx.. €31 mln). The purchase price reflects a gross yield of 13.7%.
Danish Real Estate (DaRE) purchased the properties in three separate transactions with different vendors. The assets comprise a total of 181,983 m² with 72 tenants and are located in Kolding, Vejle, Vojens and four locations in the Greater Copenhagen area. The purchase takes the size of DaRE’s portfolio to 384,000 m² and a value of c. DKK 800 mln (approx. €110 mln). M7 advised on the purchase and will oversee the management of the assets.
Mette Seifert, Managing Director for M7 Denmark, said: “These properties present plenty of opportunities to add value through straight forward asset management initiatives. As the economy recovers we are beginning to see a pick-up in demand from occupiers, while the shortage of available space in prime locations is also positive for prospects.“
Source: M7 Real Estate