M7 Real Estate, acting on behalf of M7 Central European Real Estate Fund I (CEREF I), has completed the sale of a portfolio of five logistics parks across Hungary. The transaction represents the largest logistics transaction by GLA in Hungary in 2019. The purchase price was not disclosed.
The 84,000m² portfolio, which includes three assets in Budapest, one in Eger and another in Pécs, was assembled by M7 in three separate transactions during 2016 and 2017. M7 identified an opportunity to enhance the performance of these assets and reduce vacancy by implementing a targeted €4.6m CAPEX programme and new marketing strategies. As a result of this activity, the average occupancy of the portfolio has increased from 63% on acquisition to 94%, whilst the total rental income has grown by 60%. In addition, the WALT of the portfolio has almost doubled to 3 years. In a separate transaction, M7 also announces the disposal of the Atom Centre, a 2,614m² retail park, in Paks.
Balazs Magyar, MD Hungary at M7, commented: “M7 acquired the assets in this portfolio as part of the CEREF I fund, from three different sellers. We have subsequently worked closely with our partners to implement our strategy for the portfolio, leveraging our asset management expertise, improving occupancy by 28,500m². Having successfully finished our asset management plan and created an institutional quality core-plus portfolio, we made the decision to complete our business plan ahead of schedule, through this sale. This transaction, together with the sale of the Atom Centre, has allowed us to generate attractive returns for our investors.”
