4 Mar 2019

M7 acquires 16 assets in Portugal for €55.7 million

M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that on behalf of M7 Portuguese Active Fund (“M7 PORAF”) it has acquired a total of 16 assets across Portugal from six vendors, for €55.7 million.

These acquisitions comprise multi and single-let urban logistics assets (48%), office and business parks (22%) and retail parks (30%). The portfolio totals 100,999 sq m of accommodation, which is 87.8% occupied by 41 tenants. The assets present an opportunity to add value by improving occupancy and capturing reversion through active asset management, selective capital expenditure and refreshed marketing initiatives.

The majority (14) of the assets are situated within close proximity to Lisbon and Porto, in well-established micro-locations with strong supply and demand dynamics. The remaining two assets are located in the Centro Region.

M7 PORAF will continue to target value-add regional real estate in the core regions of Portugal including Greater Lisbon and Porto. The fund is managed by M7 with asset management services provided by M7’s Portuguese business, which is based in Lisbon.

Leonardo Peres, MD Portugal, commented, “We are extremely pleased to have acquired this first tranche of assets for our new Portuguese fund. These acquisitions demonstrate M7’s ability to identify assets, both on and off market, where there is an opportunity to create additional value. They provide a strong and diverse income stream and there is also a range of opportunities to enhance capital and rental values through a targeted asset management programme. Finally, we have identified a strong pipeline and expect to announce further acquisitions shortly.”

SRS acted as legal advisor, Savills Portugal as technical advisor and Ambiente as environmental advisor for M7.