M7 acquires €45 million of office assets for new €120 million Polish fund

8 April 2019

M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that, on behalf of M7 Polish Active Fund (“M7 POLAF” or the “Fund”), it has acquired three multi-let office assets in Poland in separate transactions for a total of €45 million which will form the first tranche of capital deployed for the Fund.

These acquisitions come as M7 has raised circa €38 million from almost 30 HNW and institutional investors. With leverage, the Fund will have a total investment capacity of approximately €120 million.

The acquired assets include Green Park, a modern multi-let business park with seven buildings in Katowice, southern Poland; Delta 44, a high quality multi-let boutique office building in Wroclaw city centre, western Poland; and Mazovia Plaza, a multi-let, seven storey office building in Warsaw.

This first tranche of assets provide a total of 33,417 sq m of office space which is 91% let to over 45 tenants and provides a strong and diversified cashflow from day one but with various opportunities to add value through active asset management initiatives. POLAF will continue to target value add office and industrial investments in key regional Polish markets with further completions anticipated shortly and full capital deployment before the end of H1 2019.

M7 has been active in the Polish market since 2014 during which time it has grown assets under management to c. €80 million.

Katarzyna Parkot, Managing Director of Poland at M7, said: “This is M7’s first fund dedicated solely to Poland and these acquisitions mark the first step in our ambition to assemble a high quality portfolio of office and light industrial assets in supply constrained markets, which offer positive rental growth potential and scope to add value. We are also in advanced stages on a strong pipeline of additional investments as we continue to deploy capital on behalf of the Fund.”

Paul Betts, Head of Central Europe at M7, commented: “We continue to experience strong demand for Polish commercial real estate from a range of investors attracted by the market’s strong fundamentals. The assets we have secured complement each other well and provide the balance of immediate income with some exciting opportunities to add value. We look forward to announcing further acquisitions in due course.”

M7 sells Liget Centre in Hungary

9 May 2019

M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that it has sold the Liget Centre, a grade A multi-let office building in Budapest, Hungary, on behalf of M7 Central European Real Estate Fund I (“M7 CEREF I” or the “Fund”) to WINGHOLDING Zrt. (“WING”), the leading property development and investment company in Hungary. read more

M7 acquires prominent Scottish industrial estate for new Middle Eastern separate account mandate

8 May 2019

M7 Real Estate (“M7”), the pan European investor and asset manager, announces the acquisition of Tweedbank Industrial Estate, the largest industrial estate in the Scottish Borders, on behalf of a new separate account mandate for a Middle Eastern sovereign wealth investor. The asset was acquired from funds managed by Catalyst Capital for £4.57 million, reflecting an initial yield of 8.62% and a capital value of £39 per sq ft. read more