29 Jun 2015
M7 Raises Its First Continental European Real Estate Fund focussed on the German Retail Sector
London, 29 June, 2015 – M7 Real Estate, the pan-European investor and asset manager specialising in multi-let properties, has raised its first Continental European real estate fund for third party investors.
M7 European Real Estate Investment Partners I (M7 EREIP I) has notarised the purchase of an eight-property portfolio comprising a total of 38,350 sq m of space from a private landlord at a value of €46 million, representing a yield of approximately 8.7%. The assets consist of four supermarkets, three retail warehouses and a retail park in various locations across Germany. M7 advised on the purchase, which is scheduled for completion in September, and will take charge of the portfolio’s asset management.
Richard Croft, M7 Real Estate’s Chief Executive Officer, said: “We are looking to put investor equity to work immediately and so capital-raising for our funds is asset specific. Since we have identified additional investment opportunities, we anticipate a second and final equity close in August.
M7 EREIP I’s first close raised approximately €16 million of equity. The second close is expected to raise a further €24 million taking the potential Gross asset value of the fund to €100 million with gearing.
The fund was structured by Goodwin Procter and Simmons & Simmons acted as real estate legal advisors to M7 EREIP I.