19 Oct 2016

M7 Real Estate concludes over €28 million of acquisitions for M7 EREIP III Fund

Frankfurt, October 2016 − M7 Real Estate (M7), an investor and asset manager specialising in the European market, has concluded five further acquisitions in different asset classes for its M7 European Real Estate Investment Partners III (M7 EREIP III) investment fund.

They include the “Kubikon” and “La Strada” office buildings in Bad Homburg, north of Frankfurt. “Kubikon”, at Norsk-Data-Strasse 1, was completed in 1991. It provides over 10,500 sq m of office space and almost 2,500 sq m of storage. “La Strada”, at Norsk-Data-Strasse 3, dates from 1992. It has a total lettable area of around 9,600 sq m, including ca. 8,400 sq m of offices, 1,100 sq m of storage and 100 sq m of restaurant accommodation. The total purchase price for both properties was €12.77 million.

CR Investment Management acted as transaction manager and Hatfield Philips International as loan manager for the vendor side. The Görg Partnerschaft von Rechtsanwälten advised the owner on the legal aspects of the sale. The NAI apollo group brokered the transaction.

Three retail buildings and one office building have been acquired at Bauboulevard 2-5 in the commercial area of Garbsen, not far from Hanover, the state capital of Lower Saxony. The virtually fully let buildings, constructed in 2003, provide a total lettable area of around 8,300 sq m. Their tenants include KFC, Multipolster, DriveClean and TÜV Nord. The WALT is circa nine years. The purchase price is around €7.8 million. Colliers advised on the acquisition.

A retail warehouse centre at Nürnberger Strasse 86 in Wurzburg, Franconia has also been acquired. Constructed in the mid-1980s and refurbished in 2004, the fully-let property has a total lettable area of circa 3,100 sq m. The tenants include Reno, Takko and L&L. The owner gave Estama exclusive instructions to market the property.

M7 has also acquired a commercial warehouse in the Biberweg commercial area in Troisdorf, on the Cologne city boundary. It provides almost 6,800 sq m of storage space. Let to UPS and Varian Medical Systems, it has six loading ramps and six ground-level gates. The property includes 88 parking spaces. The agent was WM Wirtz & Müller Immobilien.

M7 EREIP III pursues a value-add strategy, concentrating on retail, office and multi-tenant properties in the industrial segment that produce steady incomes but also have asset management potential. The target markets are Germany and the Netherlands.

The fund now has a portfolio of 65 properties in Germany and the Netherlands, with a total floor area of around 491,000 sq m.