M7 Real Estate, the pan European investor and asset manager, announces that it has acquired approximately €213m of assets in Finland, Germany and the Netherlands, on behalf of M7 European Real Estate Investment Partners IV (“M7 EREIP IV” or the “Fund”). These are the first acquisitions for the Fund, which at its first close, earlier in September 2016 received capital commitments totalling over €175m, giving a total investment capacity in excess of €400m.
As part of this investment, M7 has completed on two portfolios, one in Finland and one in the Netherlands which together provide a total of 85,758m² across 18 assets and generate a blended NIY of 9.3%.
The Finnish portfolio has been acquired from Real Estate Fund Finland I managed by OP Property Management Ltd and comprises 3 retail, 2 office and 7 industrial assets totalling 63,935m². The properties are located across Finland but with the majority in and around Helsinki. The void rate is 29% and WAULT is 2 years, providing a significant opportunity to drive income through asset management initiatives.
The Dutch portfolio comprises six urban logistics properties. The properties provide 21,813m² in locations across the Randstad region and have a blended occupancy rate of 94%.
In addition to completing on these two portfolios, M7 has exchanged contracts on the acquisition of a further 35 office, logistics and retail assets, for a consideration of €151m, bringing EREIP IV’s total phase 1 investments to approximately €213m. The assets, which are located across Finland, Germany and the Netherlands, are being acquired by M7 in four further separate transactions at a combined NIY of 9.2%.
Richard Croft, M7’s Chief Executive said “We held the first close of EREIP IV at the end of September and, having achieved a total investment capacity of over €400m, these acquisitions are a strong endorsement of M7’s continued ability to raise capital and utilise our pan-European platform to quickly deploy funds into attractive, income producing investments across multiple sectors and geographies, where we see an opportunity to add value through asset management.
“Having put our first tranche of investor capital to work, we expect to have senior debt in place shortly to enable a second phase of acquisitions and will then be following this up with a further equity close later in Q4 2016.”
