M7 Real Estate has acquired 23 retail assets across Germany for a consideration of €43m on behalf of M7 European Real Estate Investment Partners I. The transaction marks the fourth acquisition for the fund, taking the total investment volume to €90m and means the fund is fully invested.
The acquisition comprises of two portfolios and two individual properties, including a portfolio of 18 retail properties totalling 40,500m² across Germany from a syndicate of sellers with a strong mix of tenants including Rewe, Metro, KiK, Dänisches Bettenlager and Fressnapf. In line with the fund’s strategy, assets provide significant opportunity to drive income asset management initiatives including the expansion of buildings and numerous lease extensions.
The remaining five assets include a portfolio of three properties across 4,250m² from Patrizia Immobilien in Baden-Wurttemberg and Rhineland-Pfalz, and two supermarket properties in Lower Saxony and Hesse, both of which are let to Germany’s largest supermarket corporation Edeka.
EREIP I was launched in 2015 to focus on value-add convenience retail opportunities and has invested in 31 properties totalling approximately 90,000m² of accommodation.
Richard Croft at M7 said: “The final close for EREIP I is a strong endorsement of our ability to raise capital and use our pan-European platform to successfully identity, acquire and manage opportunities to build a portfolio of income-producing assets to which we can add further value. The pure retail focus of the fund is demonstrative of M7’s capabilities as a multi-sector investor and asset manager.”
Simmons & Simmons acted as real estate legal advisors to M7 EREIP I. Gleeds carried out the technical due diligence and Ambiente Environmental the environmental due diligence.
