20 Feb 2017
M7 concludes purchase of the High Return portfolio for M7 EREIP IV
Frankfurt, 20 February 2017 – With the purchase of a final property, M7 Real Estate (M7), an investor and asset manager specialising in multi-tenant properties with value-add potential, acting on behalf of the M7 European Real Estate Investment Partners IV (EREIP IV) fund, has concluded the acquisition of the Valad Europe “High Return” portfolio. Ten office and light industrial properties had already been acquired for the EREIP IV fund. The transaction just concluded, for c. €15 million, brings the purchase price of the entire portfolio to €78.5 million.
The final property is Reisholzer Werftstrasse 38-42, Dusseldorf. Constructed in 1994, the building has a total lettable area of around 15,500 sq m, providing around 12,650 sq m of offices and 2,850 sq m of storage space. The property is currently around 70% let.
M7 is taking over the asset management of the property.
Simmons & Simmons acted as the purchaser’s legal adviser. Gleeds Deutschland carried out the technical due diligence and Ambiente the environmental due diligence. Colliers International organised the structured tendering process for the vendor, while Berwin Leighton Paisner provided legal consultancy services.
M7 Real Estate manages 78 properties in Germany, with a total floor area exceeding 843,000 sq m and an investment volume of c. €478 million.
M7 EREIP IV invests in multi-tenanted properties with value-add potential. Including the latest acquisition, around €296 million has already been invested since the first closing of the fund in September 2016. The fund portfolio comprises 69 properties, situated in Germany, Scandinavia, the Netherlands and Ireland. Further investments are planned.