14 Mar 2016

M7 2015 Annual Review

14th March 2016 – M7 transacts on over €1 billion of deals across its pan-European platform in 2015 and grows AUM by 60% to c. €1.7 billion.

During 2015, M7 Real Estate, the pan-European real estate investor and asset manager, raised a total of c.€290 million of new equity commitments from institutional, family office and high net worth investors and grew assets under management by a net c.€600 million to a total of c.€1.7 billion.

Total transactions comprised c. €850 million of acquisitions and c. €250 million of disposals. M7 now manages 455 properties across its pan-European platform.

During 2015, M7’s fund business grew with the launch of one new UK fund (M7 REIP IV) and three Continental European funds (M7 EREIP I; M7 EREIP II; M7 EREIP III).
– M7 REIP IV, acquired a major 47 acre regeneration site in Solihull for £38.27 million having raised c.£20m of equity from high net worth investors
– M7 EREIP I, a German retail fund raised c.€40 million of equity from high net worth investors
– M7 EREIP II, a Dutch multi-sector commercial fund raised €42 million of equity from high net worth and institutional investors
– M7 EREIP III, a Dutch and German multi-sector commercial fund raised c.€80m of equity from high net worth, family office and institutional investors at first close

Following Goldman Sachs acquisition of the Marble portfolio from VBRi, an M7 balance sheet vehicle, a new joint venture was formed between the two companies with M7 retained as the asset manager.

In addition a joint venture was set up with a major US investor in Portugal with the target of investing up to €250 million (MPort).

M7’s separate account business also developed in 2015, with a new separate account mandate launched and fully invested in the UK for two high net worth investors.

Building on its foundations as a market leading investor and asset manager of regional multi-let light industrial property M7 undertook a number of senior recruitments hires throughout the year to continue its expansion into the retail and office property asset classes that now represent c.20% of the portfolio, as well as into new activities such as planning and development.

In 2015, M7 formed MountSeven LLP, a joint venture with Mount Street Loan Solutions LLP, combining the loan servicing business of Mount Street with the asset management and asset underwriting business of M7, providing investors in the NPL space with a complete operating partner solution.

Richard Croft, Chief Executive said: “2015 was a real milestone in the development of M7. We increased our investment portfolio significantly and continued to broaden our portfolio across asset classes and activities. In addition, we entered new European markets via Portugal and the Czech Republic. The growth we’ve been able to achieve is an endorsement from our partners of our strategic focus and key strengths and we will continue to build upon this throughout 2016.”