M7 Real Estate secures new lettings at Hanover Asset

London, 22 August 2016 – M7 Real Estate, the pan-European investor and asset manager, announces that, on behalf of M7 European Real Estate Investment Partners I (“EREIP I” or “the Fund”), it has secured the letting of 3,734 sq m of retail and office space in Hanover and Arnsberg, taking occupancy across the EREIP I portfolio to over 82%. At its final close in April 2016, EREIP I had a total investment capacity of circa €90 million all of which has been invested in value-add retail opportunities across Germany.

M7 has agreed the letting of over 1,170 sq m of retail and office accommodation at its retail warehouse centre at Hildesheimer Strasse 420-428, Hanover. This includes a new five year lease for 470 sq m of retail space with leading workwear brand Tanski OHG, as well as a lease extension with the free church of the Seventh-Day Adventist Norddeutscher Verband K.d.ö.R for over 700 sq m of office space. Following these lettings, the asset is now over 88% let, with a WAULT of 3.87 years, achieving a rental uplift of 4.28%.

In addition, M7 has agreed a lease extension with Maxxum Getränkelogistik GmbH, a subsidiary of Germany’s largest supermarket corporation EDEKA, on over 900 sq m of retail accommodation in Clemens-August-Strasse 81, Arnsberg in North Rhine-Westphalia. The asset will remain 100% occupied with an improved WAULT of 3.25 years, following completion of lease documentation.

Following these lettings in Hanover and Arnsberg, there are various key leasing discussions underway across the portfolio, that will serve to further strengthen the income profile of EREIP I.

Jack Thoms, Head of European Asset Management at M7 Real Estate commented: “Our plan with EREIP I was to invest in attractive income-producing retail assets to which we could add further value, and, having reached full investment earlier this year, we are now firmly in the second phase of our investment strategy. These most recent lettings are a strong endorsement of our capability as an asset manager, and we look to further drive income and occupancy through new tenants, lease extensions and targeted capital expenditure.”

Engel & Völkers Hanover advised M7.