9 May 2017
M7 acquires a further two additional assets in Budapest for M7 CEREF I
London, 9 May 2017 – M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that it has acquired a further circa. €20 million of assets in Budapest, Hungary on behalf of its first Central European fund for third party investors, M7 Central European Real Estate Fund I (“M7 CEREF I” or the “Fund”). This follows the Fund completing its final close, reaching its target raise of €60 million of investor capital in April 2017, as well as the agreement of a €68.5 million senior debt facility with Starwood European Real Estate Finance.
M7 has acquired the Liget Center in Budapest from a fund managed by CBRE Global Investors. The property offers 10,863 sq m of high quality multi-let office space in the centre of Budapest, overlooking Városliget Park one of the city’s biggest parks, and provides additional stable income from a range of international tenants, as well as the opportunity to add further value through the renovation and leasing of the 3,779 sq m auditorium space.
In addition, M7 has acquired a 24,598 sq m multi tenanted industrial property in Gödöllő, Budapest, from Omega Real Estate Fund. Located circa. 30 km from the centre of Budapest, the property is currently 85% occupied to three international tenants, and M7 plans to add value through negotiating lease prolongations with existing tenants as well as repositioning of underutilised and void space.
David Ebbrell, Chief Investment Officer at M7 said, “As we continue to expand into CEE, these acquisitions are a further demonstration of the value that we see in the region, having now closed on a total of €84 million of assets on behalf of M7 CEREF I. We have identified a further pipeline of acquisitions, and anticipate closing a further significant transaction in the near term.”