M7 Real Estate has sold two retail warehouse assets in the Hesse region of Germany to Everest P 10 GmbH, a fund managed by MIMCO Capital. The properties, which are situated in Michelstadt and Ober-Morlen near Frankfurt am Main, comprise a total of circa 6,600m² and are 100% let to EDEKA and REWE, the supermarket chains, respectively. Since acquiring the assets in 2016 (Ober-Morlen), and 2017 (Michelstadt), M7 has extended the leases on both properties, increasing the combined WALT to six years.
Richard Fletcher, Director Transactions – Germany, at M7 Real Estate, commented: “This sale follows the conclusion of our asset management strategy for each building and is in line with our business plan. Investor appetite for properties producing long and secure income is very strong, so with lease extensions agreed on both properties, the portfolio presented an attractive package with positive cash flow at a more attractive entry point to more core investments.”
Peter Wenzel, Managing Director, Germany, at M7 Real Estate, said: “Crystalising value for our investors is an important part of what we do, and in this case, we were able to leverage our strong relationships to agree an attractive off-market deal. Germany remains a key market for M7 and we have ambitions to grow significantly, deploying capital on behalf of our clients into core + and value add opportunities with a focus on the light industrial, logistics and e-warehousing sectors.”
