M7 Real Estate, acting on behalf of M7 European Real Estate Investment Partners IV, has sold a light industrial property in Ottobrunn, Bavaria. The purchaser is part of the Accumulata Real Estate Group. The parties have agreed not to disclose the purchase price. The asset, at Christa-McAuliffe-Strasse 1, has a lettable area of around 13,650m² and comprises a warehouse building with ancillary office space. The building, which was constructed in 1982, also provides 130 car parking spaces. Occupied on long leases by two strong covenants, Flugzeug-Union Sud and Carl Stahl Sud, the asset’s weighted average unexpired lease term (WAULT) is seven years. Accumulata will be taking over as the long-term asset manager of the property.
Richard Fletcher, Head of Transactions at M7 Real Estate Germany, commented: "Purchased as part of a portfolio for M7 EREIP IV, we have demonstrated our asset management expertise by reducing the vacancy and improving the long term cash flow of the property. Having identified this opportunity and stabilised the income in accordance with our business plan, we decided to sell the asset generating attractive returns for our investors. M7 continues to explore opportunistic sales, where appropriate, on behalf of the Fund.”
"We are pleased to purchase the property in a location which is significantly improving. The combination of a stable cash flow and potential for a future increase in value is a perfect fit with our long-term investment strategy", commented Tobias Doscher, Head of Transaction Management at Accumulata Real Estate Investment Management.