14 Jul 2022

M7 sells two retail warehouses totalling c. 6,600 sq m in Germany

M7 Real Estate (“M7”), the pan-European investor and asset manager specialising in multi-tenanted properties, announces the off-market sale of two retail warehouse assets in the Hesse region of Germany to the Everest One Fund, a fund managed by MIMCO Capital.

The assets have been sold on behalf of M7 European Real Estate Investment Partners I and M7 European Real Estate Investment Partners IV (“M7 EREIP I”, “M7 EREIP IV” or the “Funds”), which form part of M7’s pan-European value add fund series.

The properties, which are situated in Michelstadt and Ober-Mörlen near Frankfurt am Main, comprise a total of c. 6,600 sq m and are 100% let to EDEKA and REWE, the supermarket chains, respectively. Since acquiring the assets in 2016 (Ober-Mörlen), and 2017 (Michelstadt), M7 has extended the leases on both properties, increasing the combined WALT to six years.

Active in Germany since 2014 with offices in Frankfurt and Düsseldorf, M7 has established a strong footprint in Germany transacting a total of €2 billion of acquisitions and disposals since it entered the market on behalf of its pan-European value add funds and joint venture partners. M7’s portfolio in Germany totals 420,000 sq m of industrial, offices and retail warehouse assets across 11 markets including Hamburg, Rhein-Main and Rhein Ruhr conurbations.

Richard Fletcher, Director Transactions – Germany, at M7 Real Estate, commented: “This sale follows the conclusion of our asset management strategy for each building and is in line with our business plan. Investor appetite for properties producing long and secure income is very strong, so with lease extensions agreed on both properties, the portfolio presented an attractive package with positive cashflow at a more attractive entry point to more core investments.”

Peter Wenzel, Managing Director, Germany, at M7 Real Estate, commented: “Crystalising value for our investors is an important part of what we do, and in this case we were able to leverage our strong relationships to agree an attractive off-market deal. Germany remains a key market for M7 and we have ambitions to grow significantly, deploying capital on behalf of our clients into core + and value add opportunities with a focus on the light industrial, logistic and e-warehousing sectors.”

M7 was advised by Simmons & Simmons, Gleeds and Nova Ambiente. K&L Gates acted for the buyer.