19 Dec 2019
M7 Real Estate buys three properties for EREIP V Fund
M7 Real Estate (M7), the pan-European investor and asset manager, has acquired three commercial properties in Germany for its fifth European value add property fund, M7 EREIP V for EUR 17.7 million, in three separate transactions.
The first property was acquired from May & Co and is located at Ostring 6, in the Nordenstadt district of Wiesbaden. The asset is a mixed-use logistics and leisure asset of 15,300 sq m with tenants including SOPRO Bauchemie and the Superfly trampoline park. It has a vacancy rate of approximately 25%, thereby offering the opportunity to create value by increasing occupancy.
The second acquisition in Koblenz was a sale and lease-back deal, on a 10-year FRI (triple net) lease, with an option for a further five years. Well-located on the northern edge of the city, the building has a flexible structure, occupying 11,750 sq m on a large site of c. 33,000 sq m. The vendor is a Mutares investment company.
The final asset in Bischofsheim, Rhineland-Pfalz is a cross-dock logistics warehouse and ancillary office building. Built in 1991, it has a total lettable area of 3,800 sq m on a circa 14,600 sq m site. Recently vacant (since November), it is situated in a very strong location with good access to Frank-furt and the key regional cities of Mainz and Wiesbaden, which are situated around ten kilometres away. It has already attracted strong occupier interest post- acquisition.
M7 was advised by Simmons & Simmons, Ambiente, Gleeds and Arcadis. The transactions were bro-kered by NAI apollo, Oehls Real Estate and JLL Frankfurt.
The M7 EREIP V fund invests in commercial property in Germany, Denmark, Ireland and the Netherlands, in the urban logistics, retail and offices. The portfolio currently includes 47 properties, with a total value of around EUR 220 million.