Monday, 10 November 2014
M7 Starwood Capital Group joint venture acquires nine German light industrial properties for €57.6 million (DE)
MStar Europe, the multi-let property joint venture between M7 Real Estate and a controlled affiliate of Starwood Capital Group, has invested €57.6 million to acquire nine German light industrial warehouses from various vendors.
Alyssa Huse, Managing Partner of M7 Real Estate Germany GmbH, said: “The lack of development during the financial crisis means there is great potential for these well-located assets through hands-on management by our highly experienced team. We are actively looking for more of these high-yielding investments in Germany.”
Adam Shah, Senior Vice President at Starwood Capital Group, added: “We view light industrial as a defensive asset class that benefits from both sector and credit risk diversification. We look forward to continuing to invest in properties with our capable partner that offer the potential to deliver strong cash flows and attractive risk-adjusted total returns for our investors.”
The purchases add 147,000 m² of lettable space to MStar Europe’s portfolio of assets, which has expanded significantly in the past two months through acquisitions in the Netherlands and a successful buyout of the listed Tamar European Industrial Fund. M7 Real Estate advised on the purchases and will manage the assets.
MStar Europe is M7 Real Estate and Starwood Capital Group’s second joint venture after MStar, the U.K.-focused vehicle the partners formed in June 2013. Established in April 2014, MStar Europe aims to invest up to €500 million in high-yielding, multi-let light industrial property in Continental Europe.
Source: Bellier Financial