M7 Real Estate, acting on behalf of M7 French Active Fund, has agreed to acquire four multi-let office and light industrial assets in France for €35.5m in four separate transactions. These transactions mean that the Fund is now fully invested with AUM of approximately €115m, having raised €60.5m from a broad range of investors based in Asia, the USA and Europe and following a final close in October 2018.
These acquisitions, which comprise 59,944m², are 99% occupied by 20 tenants. Three of the assets are situated within close proximity to Paris, in strong micro-locations with favourable supply and demand dynamics. The remaining asset is near the northern city of Rouen and is long-let to a fast-growing technology company. The Fund’s portfolio now comprises 175,000m² of multi-let office and industrial space across 32 assets and is 90% weighted towards the Greater Paris region by value. With a high occupancy rate of 86%, the portfolio presents an opportunity to grow income and capture reversion through active asset management.
Richard Croft, Chief Executive Officer of M7 Real Estate, commented: “Since establishing our first dedicated French fund in the middle of last year, we have swiftly deployed the capital raised to create a strong portfolio and are already underway with a number of active asset management initiatives. We are now in the process of replicating this model in Poland and Portugal, where we have an established track record in identifying compelling investment opportunities and unlocking value for investors. This is taking place in conjunction with the growth of our pan-European fund series.”
