28 Jan 2019
M7’s first dedicated French fund now fully invested with acquisition of €35 million of office and light industrial assets
London, 28 January 2019 – M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that it has agreed to acquire, on behalf of M7 French Active Fund (“M7 FAF” or the “Fund”), four multi-let office and light industrial assets in France for €35.5 million in four separate transactions. These transactions mean that the Fund is now fully invested with AUM of approximately €115 million, having raised €60.5 million from a broad range of investors based in Asia, the USA and Europe and following a final close in October 2018.
These acquisitions, which comprise 59,944 sq m of accommodation, are 99% occupied by 20 tenants. Three of the assets are situated within close proximity to Paris, in strong micro-locations with favourable supply and demand dynamics. The remaining asset is near the northern city of Rouen and is long-let to a fast growing technology company.
The Fund’s portfolio now comprises 175,000 sq m of multi let office and industrial space across 32 assets and is 90% weighted towards the Greater Paris region by value. With a high occupancy rate of 86%, the portfolio presents an opportunity to grow income and capture reversion through active asset management.
Richard Croft, Chief Executive Officer of M7 Real Estate, commented: “Since establishing our first dedicated French fund in the middle of last year, we have swiftly deployed the capital raised to create a strong portfolio and are already underway with a number of active asset management initiatives. We are now in the process of replicating this model in Poland and Portugal, where we have an established track record in identifying compelling investment opportunities and unlocking value for investors. This is taking place in conjunction with the growth of our pan-European fund series.”
M7 FAF invests in high yielding regional real estate in core regions of France, including Greater Paris, Marseille and Lyon. Investments are focused primarily on assets occupied by small and medium sized enterprises. The Fund is managed by M7 with asset management services provided by M7’s French business, based in Paris.