M7 Real Estate (“M7”) the pan-European investor and asset manager, announces that it has fully invested its fifth value add European investment fund, M7 European Real Estate Investment Partners V (“M7 EREIP V” or the “Fund”) having raised a total of €125 million of investor capital following a final close in June 2019.
The Fund’s investors include high net worth individuals, family offices and sovereign wealth investors from Europe, Hong Kong and the Middle East, and the Fund’s portfolio now has a total value of €251 million with a price of €686 per sq m and is c.82% let with a WALT of 3.7 years. The Fund’s strategy has been to aggregate single assets across a large number of transactions rather than acquiring portfolios which has enabled it to generate a NIY of 8.4%.
Richard Croft, Executive Chairman of M7, commented: “Having successfully deployed the capital raised on behalf of the Fund within an efficient timeframe, our focus is now to stabilise the portfolio of assets we have assembled”.
“We have continued to see strong investor appetite for European value-add strategies, which has been demonstrated by the level of investor interest we have received for this fund.”
David Ebbrell, Chief Executive Officer of M7, commented: “The final close of EREIP V has facilitated the completion of a further 22 acquisitions comprising 129,000 sq m in separate transactions totalling €103 million and takes the total portfolio to 366,000 sq m across 49 office, industrial and retail warehouse assets located in Denmark, The Netherlands, Germany and Ireland. It comprises 47% office, 41% industrial/logistics and 12% retail warehouse assets. Following the final acquisitions, a number of asset management initiatives are already underway with capex allocated to facilitate leasing activity and re-market the vacant space across the portfolio to drive income returns for our investors.”