9 Jun 2016
M7 completes 750,000 sq ft Dutch acquisition at final close of third European fund
London, 9 June, 2016 – M7 Real Estate, the pan-European real estate investor and asset manager, announces the final close of its third European investment fund, M7 European Real Estate Investment Partners III (“M7 EREIP III” or the “Fund”) having received total commitments of c. €125 million giving the fund a gross acquisition capacity of approximately €300m. Simultaneously, M7 acquired a portfolio of seven industrial assets for the fund for €34.85 million, reflecting a net initial yield of 9.74%. M7 EREIP III has now transacted on c. €204 million of acquisitions with an average yield of 10.7%. Acquisitions have included the purchase of Le Delacroix portfolio, the Ten portfolio, Project North and the RIVA portfolio.
The 750,374 sq ft portfolio, known as the Zenith Industrial Portfolio, was acquired from a JV managed by Goldman Sachs and Valad Europe and comprises seven assets across the Netherlands. These include both distribution and multi-let, light industrial properties across a series of strong industrial locations including Amersfoort, Hoofdorp, Delfgauw and Schiedam. The portfolio currently produces €3.7 million of rental income per annum and has a WAULT of 2.79 years. Existing tenants include a number of large, high profile companies such as Post NL, watchmaker Seiko, the German car parts manufacturer ZF Group, Impco-Beru Technologies and TNT.
The acquisition brings M7 EREIP III’s total portfolio to c. 3.8 million sq ft. The Fund has targeted assets that offer both sustainable income streams and asset management opportunities in the retail, office and the multi-let industrial sectors in both Germany and the Netherlands. It now owns 45 assets. The Fund has a further €70 million of assets under offer.
Richard Croft, M7’s Chief Executive said: “M7 EREIP III is M7’s largest fund to date, raising funds from third party US and Asian investors totaling c.€125 million. We are very pleased with the Dutch and German assets that have been acquired which provide a strong mix of core income coupled with opportunities to drive value through refurbishments and rental growth. We look forward to working with this portfolio to develop high quality assets that produce meaningful income and total returns for our investors.”