M7 Real Estate, acting on behalf of M7 ISLAY, of a portfolio of 27 retail properties in Germany, to the FIM Unternehmensgruppe for €86.4m. The portfolio, which includes a mix of high quality, food anchored tenants, comprises a total rental area of 72,594m². The assets are 92% let to a range of occupiers including Lidl, Netto, Edeka, Rewe, Danisches Bettenlager and SIEMES Schuhcenter. The largest single asset, which is on Hildesheimer -Strasse in Hannover, comprises 10,710m² of space.
Having acquired the properties in separate transactions over 2015 to 2016 on behalf of the Fund, M7 implemented an active management strategy involving CAPEX projects, securing new leases and restructuring existing leases As a result, M7 has increased the occupancy of the portfolio from 80% to 92% and extended the unexpired lease term to 6 years.
Alyssa Huse, Managing Director, of M7 Real Estate in Germany, said: "This sale is in line with our business plan and has delivered attractive returns for our investors. Leveraging our asset management expertise, we have improved the performance across the portfolio, attracting a diverse occupancy base to these well-located assets and creating an attractive market proposition."
"We see good potential for value enhancement in the portfolio, and we want to continue the path already taken by M7 by optimizing individual properties," said Jan Lerke, the FIM Group's Managing Director responsible for real estate management. "In this regard, we are holding talks with initial operators. The retail package is particularly interesting for us because of the individual locations in major cities such as Hanover or Saarbrucken."
