2 May 2018
M7 raises €30 million for first dedicated French Fund and acquires seed portfolio
London, 2nd May 2018 – M7 Real Estate (“M7”), the pan-European real estate investor and asset manager, announces that it has raised its first dedicated French fund. M7 French Active Fund (“M7 FAF” or the “Fund”) has received investor commitments from high net worth, family office and institutional investors based in Asia, the USA and Europe for c.€30 million in a first close with a second close expected during the next quarter. Concurrently, M7 has made an initial acquisition of portfolio of 23 assets in Greater Paris for €60.15 million.
M7 FAF will target high yielding regional real estate in core regions of France, including Greater Paris, Marseille and Lyon. Investments will be focused primarily on assets occupied by small and medium sized enterprises. The fund will be managed by M7 with asset management services provided by M7’s French business, based in Paris.
The seed portfolio, which comprises multi and single-let urban logistics assets (43%) and business parks (57%), offers 80,098 sq m of accommodation in good locations and an initial yield of c. 7%. The portfolio, which is 73.5% let, presents an opportunity to add value and improve occupancy through active asset management, selective capital expenditure and refreshed marketing initiatives.
Richard Croft, Chief Executive Officer of M7 Real Estate, commented: “The real estate market in France is strong with positive occupier and economic trends. The funds raised have been immediately deployed into a portfolio of income producing assets which present an opportunity for M7 to apply its asset management expertise to drive returns for investors. We have an exciting pipeline of further acquisitions which will conclude in line with a second fund close.”
M7 has extensive experience in the French market and has been operating on the ground since opening its Parisian office in November 2014. At present, M7 manages 26 assets in France for other M7 vehicles focused on the multi-let light industrial sector.