M7 significantly increases occupancy and rent at Bürgermeister-Schlag-Straße 10, Eichenzell, Germany

30 September 2019

M7 Real Estate Ltd (M7) the pan-European investor and asset manager has increased the occupancy to 99% and income by 220% on Bürgermeister-Schlag-Straße 10, Eichenzell, Germany.

Bürgermeister-Schlag-Straße 10 is a well-located industrial estate close to Fulda in Eichenzell, central Germany, comprising 18,045 sq m, which was acquired by M7 on behalf of a major fund in June 2017. Prior to the purchase, the main tenant filed for insolvency which resulted in a vacancy rate of 50 % (c.9,000 sq m). In addition to this, other asset management challenges included short term leases with outstanding service charges which had led to a considerable shortfall in net income.

Prior to marketing the space, M7 thoroughly analysed the technical deficiencies of the units following which several capital expenditure projects were undertaken. These included new electrical installations, new lighting systems, installation of a glass fibre optic internet connection as well as several fire protection measures culminating in the creation of a new fire protection concept, which included the installation of new fire doors and smoke detection systems.

After completing the upgrades, the vacant space was marketed via all the available media channels together with a cold calling initiative. In addition, the vacant units were included in M7’s monthly broker update.

As a result of these initiatives, KBS Gastrotechnik GmbH (KBS) showed interest in the asset and ultimately agreed to a new 8-year firm lease across 7,979 sq m at an annual contracted rent of €277,270 pa (€34.75 per sqm), which was €5 per sqm (17%) ahead of M7’s ERV. Furthermore, an existing tenant, John Spedition GmbH, had an expansion requirement and agreed to an additional 2,791 sq m of warehouse space at an annual rent of €96,987 pa (€34.75 per sqm) until the end of 2020. In addition to the expansion, John Spedition GmbH agreed to renew their existing space, 7,060 sqm, securing a further €188,076 pa.

As a result, occupancy at the asset has increased to 99% with a WALT of 4.17 years, which is a 3.76 year increase since August 2018. Net income has increased by over 220% since acquisition, and all tenancy agreements require prepayment of service charge.

M7 successfully regears lease at Aveiras 4, Lisbon

27 May 2020

M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that it has successfully regeared a lease with the existing tenant, Carreras, at Aveiras 4, on behalf of the M7 Portuguese Active Fund (“M7 PoRAF”). read more

M7 puts best foot forward to raise over €7,000 in 20 days for 87 different charities across Europe

26 May 2020

Over 160 members of the team at M7 Real Estate (“M7”), the pan-European investor and asset manager, have raised a total of more than €7,000 for 87 charities of their choice. read more

TTB acquires minority stake in M7 amid continued Asian appetite for European real estate

22 May 2020

TTB Partners, a Hong Kong based investment and advisory firm, today announced the acquisition of a minority stake in M7 Real Estate. The investment is the latest step in a wider collaboration between the two companies, as they seek to capitalize on the continued appetite from Asian investors for European real estate. TTB will utilize its own network of contacts in the region to access new capital pools looking to invest in UK and pan-European real estate, either through joint ventures or through investment funds. read more