18 Jan 2017
M7 invests a further €36 million in Dutch assets for M7 EREIP IV
London, 18 January 2017 – M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that it has invested approximately €36 million across nine office and retail assets in the Netherlands on behalf of M7 European Real Estate Investment Partners IV (“M7 EREIP IV” or the “Fund”). The completion of the acquisitions follows the agreement by M7 of a €143.4 million, 65% LTV senior debt facility with Bank of America Merrill Lynch in late 2016. A total of €265.8 million has now been deployed on behalf of M7 EREIP IV, which was launched with a €175 million first close in October 2016, so far delivering a 435,991 sq m portfolio of 62 assets in Finland, Germany, Ireland and the Netherlands.
M7 has acquired seven assets from Valad, comprising the Landmark Portfolio and the Sports Business Centre. The Landmark Portfolio was purchased for €8.9 million and offers 20,391 sq m of office accommodation across six assets, located in core Dutch office markets including Utrecht, Amersfoort and Den Bosch, and in city centre locations in Heerlen and Gouda. The portfolio is currently 47% occupied and offers significant potential to drive income and capital returns through a refurbishment programme and the letting of vacant space. The Sports Business Centre, a 20,305 sq m exhibition and business-to-business retail centre in Leusden, a town approximately 25km east of Utrecht, was acquired for €14.27 million. It provides a strong and diverse income profile with opportunities to add further value through asset management.
Two further assets have been acquired in separate transactions. The Leyweg Den Haag retail centre has been acquired for €9.7 million. It comprises a parade of 35 units located in a busy residential area in The Hague, and M7 has already identified a number of asset management initiatives to drive income and occupancy, including a targeted capex programme and the leasing of void space.
Australielaan 14-16/Vrieslantlaan 1-3, Utrecht, a fully let 5,119 sq m office building in a strongly performing Utrecht sub-market, has been acquired for €2.85 million from Prinsenburg, enterprise of T. Westermeijer jr. It provides stable and diversified income streams for investors through high occupancy and a strong tenant mix.
David Ebbrell, Chief Investment Officer at M7 commented, “Together these nine assets offer strong and diverse income profiles, as well as a range of opportunities to enhance their capital and rental values. That we have been able to deploy such a significant tranche of equity so soon after the launch of EREIP IV is a strong endorsement of the ability of our pan-European platform to quickly identify and transact on the most compelling investment opportunities to create real value for our investors. We have a strong pipeline of further potential acquisitions in place across the Continent.”
Van Doorne, Savills and Ambiente provided legal, technical and environmental advice respectively to M7 on all of the acquisitions; Savills advised Valad on the sales of the Landmark Portfolio and the Sports Business Centre; Ringstate BV acted for M7 on the acquisition of Leyweg Den Haag, while Nadorp Investment Services acted on behalf of the vendor; and 3Stone Real Estate provided brokerage advice to M7 on the acquisition of Australielaan 14-16 and Vrieslantlaan 1-3, Utrecht.