M7 Real Estate has completed the acquisition of €140m of assets on behalf of M7 European Real Estate Investment Partners IV (M7 EREIP IV), with a further €35m of assets expected to complete over the summer. These acquisitions comprise 68 assets and are being purchased through a combination of portfolio and individual transactions and total 331,000m² across Denmark, Germany and the Netherlands.
The Fund’s final close was in November 2017 which saw a total of €400m raised from a broad investor base, including from the US, Hong Kong and the Middle East. These final acquisitions will result in a total AUM for the Fund of approximately €800m invested in high yielding, value-add regional real estate in Scandinavia, Germany, The Republic of 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 has identified a number of asset management initiatives to improve the occupancy, performance and value of the portfolio.
Richard Croft, Chief Executive of M7 Real Estate, commented: “Fully investing M7’s largest fund to date will mark a major milestone for us. 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. The portfolio presents a compelling opportunity to add value and generate attractive returns for our investors by applying our asset management expertise.”