15 Jul 2015

M7-Oaktree’s Nordic Joint Venture Buys Seven Light Industrial Properties in Denmark for c. €31m

London, 15th July, 2015 – DaRE, the joint venture established by M7 Real Estate and funds managed by Oaktree Capital Management, L.P. (Oaktree) to invest in higher-yielding light industrial properties in the Nordic region, has acquired seven assets in Denmark for 232.6 million kroner (approximately €31 million). The purchase price reflects a gross yield of 13.7%.

Danish Real Estate (DaRE) purchased the properties in three separate transactions with different vendors. The assets comprise a total of 181,983 sq m. with 72 tenants and are located in Kolding, Vejle, Vojens and four locations in the Greater Copenhagen area. The purchase takes the size of DaRE’s portfolio to 384,000 sq m. and a value of c. DKK 800 million (approx. €110 million). M7 advised on the purchase and will oversee the management of the assets.

Mette Seifert, Managing Director for M7 Denmark, said: “These properties present plenty of opportunities to add value through straight forward asset management initiatives. As the economy recovers we are beginning to see a pick-up in demand from occupiers, while the shortage of available space in prime locations is also positive for prospects.“