19 May 2020

M7 sells Dutch light industrial portfolio for c. €140 million

M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that it has sold a light industrial portfolio in the Netherlands to the Canadian real estate investor, Dream Industrial REIT, on behalf of M7 European Real Estate Investment Partners IV (“M7 EREIP IV” or the “Fund”), for circa €140 million. M7 will be retained as advisor for the portfolio.

The portfolio comprises 31 high quality light industrial and logistics properties that were acquired by M7 between October 2016 and June 2018 through 12 separate transactions and it provides significant scale in a highly fragmented market. The total portfolio spans c.192,000 sq m and is 96% let to over 70 tenants, providing a diversified tenant mix.

The assets are primarily concentrated in the country’s major urban centers including Amsterdam and Rotterdam, with over 87% of the properties located within 30 km of their respective city centres. Their strategic location means the assets serve as key last mile distribution hubs and capture growing demand for space in these markets from e-commerce businesses.

M7 manages assets with a total value of circa €760 million in the Netherlands comprising a total of circa 904,000 sq m across offices and light industrial space.

Simon Cowley, Divisional Director, Investment Management at M7, commented: “This disposal demonstrates M7’s ability to identify and assemble a portfolio of assets with strong potential and to stabilize them through our asset management expertise, creating an institutional grade investment product while also delivering attractive returns for our investors.

“To be retained as advisor for the portfolio by the purchaser is a great endorsement of the team. It will also provide a seamless transition and continuous relationship with a best-in-class management team that has hands-on experience and deep knowledge of each property. We look forward to working with Dream Industrial REIT to help maximise their returns.”

David Ebbrell, Chief Executive of M7, added: “The Netherlands remains a strategically important market for M7 where our team on the ground manage a sizeable portfolio on behalf of our investors. The sale of these assets on behalf of EREIP IV ahead of the anticipated time frame and at the prices achieved demonstrates M7’s ability to deliver returns for our investors through active asset management and a value add approach has enabled the estimated five year hold period for the assets to be halved whilst still achieving their projected returns.”