M7 Real Estate (M7) has completed the €62m refinancing of M7 European Real Estate Investment Partners V’s (M7 EREIP V) Dutch portfolio with existing lender Societe Generale and a debt fund managed by LBP AM. The new 3+1+1-year co-arrangement facility is secured against a portfolio of 25 properties located across the Netherlands, including offices, light industrial, logistics, and retail.
Since acquiring the assets between 2018 and 2019, M7 has undertaken a number of asset management initiatives to improve the portfolio’s ESG credentials and income profile, including actively reducing the vacancy rate by 7%, largely due to an ambitious sustainability-driven capex programme, which will be continued under this new facility.
The Netherlands is M7’s second-largest market outside of the UK, where it manages a total of €657m of assets across 112 industrial and logistics, retail warehouses and office buildings.
Hugh Fraser, Executive Managing Director, Capital Markets at M7 Real Estate, commented: “Despite the challenging market environment, the lending appetite for well-managed, institutional quality assets remains strong in the Netherlands. We are seeing the increased bifurcation of the regional office market, with both investors and occupiers seeking modern and sustainable spaces. M7’s ongoing programme of sustainability focused improvements means that the asset management team is well-placed to capitalise on this positive demand, evidenced by the recent leasing activity we have undertaken. This refinancing also sees us continue our strong working relationship with Société Générale, one of M7’s key lenders, and we look forward to working with LBP AM on this new facility and exploring other opportunities in the future.”
LBP AM’s Christophe Murciani, MD Real Estate Finance, added: “We are extremely pleased to have carried out our inaugural co-arrangement facility this year. M7’s highly skilled management professionals have worked hard to make the assets desirable to corporate occupiers and will continue to improve their environmental footprint to increase their liquidity. These are the kind of sponsors and assets we look to finance in the future.”
M7 was advised by Goodwins, Loyens & Loeff and Arendt. The lenders were advised by Simmons and Simmons.
Image provided by FTI Consulting.
Europe Real Estate — an overview of real estate developments in European countries.
