18 Aug 2014

M7 Real Estate acquires German light industrial property portfolio for €44.7 million

Frankfurt, 18 August 2014 – M7 Real Estate has advised MStar Europe, the multi-let light industrial property venture that M7 Real Estate formed with Starwood Capital, on the acquisition of five light industrial properties in Germany for a total of around €44.7 million from funds managed by Valad Europe. The portfolio, which has a total lettable area of around 100,000 sq m and is occupied by 55 tenants, was acquired for less than €450 per sq m.

The properties are situated in Frankfurt, Pulheim near Cologne and Stelle near Hamburg, with two properties in Ratingen near Dusseldorf. M7 Real Estate will take over the asset management of the buildings. Alyssa Huse, Managing Partner of M7 Real Estate Germany GmbH, said: “We see great potential for this well-located portfolio through hands-on asset management by our highly experienced team.”

MStar Europe, M7 Real Estate and Starwood’s second joint venture after MStar, the U.K.-focused vehicle, aims to invest up to €500 million in high-yielding light industrial property in continental Europe. Its €263 million of investments to date include Germany, The Netherlands and France. The most recent investments besides the first transaction in Germany have been the acquisition of a €71 million portfolio in the Netherlands and a successful buy-out offer for the listed Tamar European Industrial Fund which had assets of c. €133 million.