London, 23 July 2018 – M7 Real Estate (“M7”), the pan European investor and asset manager, announces that it has sold two Portuguese multi-let industrial assets, Parque Tagus and Parque Jamor, in its joint venture with a U.S. based investment manager (the “JV”), to family offices for a total of €8 million.
The properties, which comprise around 22,000 sq m, are located in Portugal’s western corridor outside of Lisbon, an established logistics hub. The two assets were acquired in January 2016, each with a vacancy rate of approximately 30%. Following a successful marketing campaign in response to the strong demand in the local market, M7 let 8,369 sq. m (15 units) within 18 months of acquiring the properties, increasing their occupancy to 100% ahead of its forecast business plan.
The combined initial rental income of circa €653,000 per annum has been increased by 23% to €803,000 per annum with a weighted average lease term of 2.32 years, up 25% from 1.86 years at the time of acquisition. The tenancy base is well diversified with no single tenant representing more than 7% of rental income. Tenants include: Go Logistic, IBERSOL, Anicolor, Climamor (Trivalor Group) and Everything is New (NOS Alive festival promotors).
Leonardo Peres, Managing Director of M7 Real Estate in Portugal, commented: “The sale of the assets in the JV ahead of the anticipated time frame and at the prices achieved demonstrates our ability to deliver returns for our investors through active asset management and a value add approach. The strength of the Portuguese market has led to a shortage of compelling investment opportunities for investors and has therefore enabled the estimated five year hold period for the assets to be halved whilst still achieving their projected returns.”