15 Jun 2020

M7 Real Estate sells light industrial property in Ottobrunn, Bavaria, to Accumulata

M7 Real Estate (“M7”), the pan-European investor and asset manager, announces the sale of a light industrial property in Ottobrunn, Bavaria, on behalf of M7 European Real Estate Investment Partners IV (“EREIP IV” or the “Fund”). The purchaser is part of the Accumulata Real Estate Group (“Accumulata”). The parties have agreed not to disclose the purchase price.

The asset, at Christa-McAuliffe-Strasse 1, has a lettable area of around 13,650 sq m and comprises a warehouse building with ancillary office space. The building, which was constructed in 1982, also provides 130 car parking spaces. Occupied on long leases by two strong covenants, Flugzeug-Union Süd GmbH and Carl Stahl Süd GmbH, the asset’s weighted average unexpired lease term (WAULT) is seven years.

M7 acquired the property on behalf of the Fund in 2017 when it also assumed the role of asset manager. Following the acquisition, M7 implemented an active asset management strategy, increasing the occupancy of the building to 92%. Accumulata will be taking over as the long-term asset manager of the property.

Richard Fletcher, Head of Transactions at M7 Real Estate Germany, commented: “Purchased as part of a portfolio for M7 EREIP IV, we have demonstrated our asset management expertise by reducing the vacancy and improving the long term cash flow of the property. Having identified this opportunity and stabilised the income in accordance with our business plan, we decided to sell the asset generating attractive returns for our investors.

“M7 continues to explore opportunistic sales, where appropriate, on behalf of the Fund.”

“We are pleased to purchase the property in a location which is significantly improving. The combination of a stable cash flow and potential for a future increase in value is a perfect fit with our long-term investment strategy”, commented Tobias Döscher, Head of Transaction Management at Accumulata Real Estate Investment Management GmbH.

Law firm, Luther Rechtsanwälte, advised M7. Dentons, Oppenhoff & Rädler and Drees & Sommer advised Accumulata. Realogis Immobilien Munich acted as brokers for Accumulata.