M7 completes €31 million financing with Berlin Hyp in Germany and targets further transactions

London, 27th November 2015 – M7 Real Estate, the pan-European investor and asset manager which specialises in multi-let properties, announces that is has secured €31 million of senior financing from Berlin Hyp for its first European vehicle, European Real Estate Investment Partners I (“M7 EREIP I” or “The Fund”).

In October, M7 EREIP I purchased a portfolio of eight retail assets in Germany comprising 33,821 sq. m. of total space which was acquired from one vendor. The purchase price was circa €47m representing an initial yield of approximately 8.5%, with a vacancy of c. 7%. The majority of the assets are located in Lower Saxony.

M7, acting as investment adviser and asset manager to the Fund, has around 20 additional retail assets under offer for M7 EREIP I, which are expected to close in early 2016. M7 is currently in discussions with Berlin Hyp about the financing of these acquisitions as it looks to expand its relationship with the bank further.

Hugh Fraser, M7 Real Estate’s Head of Debt, said: “This transaction underlines both the quality of the Fund’s portfolio and our ability to leverage our local teams’ relationships to access capital across Europe. The professionalism and expertise of the Berlin Hyp team allowed us to conclude this deal in a quick and efficient manner and we now look forward to building a very strong relationship with the bank over the coming years”.

The real estate and debt finance legal adviser to the fund was Simmons and Simmons Germany, led by Wolfgang Kotzur’s team in Frankfurt.