M7 Real Estate, the pan-European real estate investor and asset manager, announces that it has invested a further €20m to acquire 11 office and industrial assets across the Netherlands on behalf of M7 European Real Estate Investment Partners III (“M7 EREIP III” or the “Fund”). This follows the final close of EREIP III in June 2016, which provided the Fund with a gross acquisition capacity of approximately €300m.
M7 has acquired ten office assets, located across key commercial centres in the Netherlands, including Amersfoort, Delft, Zoetermeer and Utrecht, from a group of private investors. Known as the ‘Brixes’ portfolio, the assets comprise a total lettable area of 27,464m² and currently produce €1.9m of rental income per annum, with a WAULT of 3.49 years. M7 has acquired the portfolio with a vacancy rate of 37.4% and has planned a series of asset management initiatives including a targeted capex plan including the refurbishment of vacant accommodation to further increase occupancy, income and value across the assets.
In a separate transaction, M7 has also acquired a 13,889m² industrial asset from a private vendor. The multi-let modern industrial unit is located in the prominent industrial area of Waalhaven, Rotterdam and is fully occupied with a WAULT of 9.64 years.
These acquisitions bring M7 EREIP III’s total portfolio to c. 395,428m², across 56 assets with a combined value of circa €208m.
Richard Croft, chief executive at M7 Real Estate commented: “These latest acquisitions for EREIP III continue the completion of our pipeline of deals for what is M7’s largest fund to date. EREIP III is focused on assets in key strategic locations in Germany and the Netherlands that offer a combination of strong income coupled with opportunities to drive value through asset management, and, with some transactions still to complete from our pipeline, we look forward to announcing further acquisitions for the Fund in the near term.”
Savills acted as the agent for M7 on the acquisition of the Brixes portfolio, whilst Van Splunter acted as agent for the acquisition of the industrial asset in Waalhaven. M7 Real Estate was advised by Van Doorne on both acquisitions.
