5 Nov 2013

Oaktree and M7 Launch JV to Target Danish Light Industrial Assets

5th November 2013 – Oaktree Capital Management and M7 Real Estate Ltd, the specialist pan European Industrial asset manager, have created a joint venture to target secondary real estate markets in Denmark and the broader Nordic region.

The venture, called DaRE (Danish Real Estate) has recently concluded its debut purchase. It acquired 26 assets across Denmark totalling 2.93 million square feet in 189 units. The initial yield of the portfolio was 11.3%.

Richard Croft, M7’s Chief Executive said “The portfolio that has been acquired is similar in make up to many of the transactions that we have undertaken in the UK. The assets currently benefit from a diversified income stream whilst providing the potential for capital value uplifts as the asset management strategy is delivered. ”

David Snelgrove, who oversees Oaktree’s European real estate activities, added: “We are excited by the formation of this joint venture with M7, one of the leading multi-let industrial asset managers. This transaction reflects a natural extension of our direct real estate and loan acquisition activities in the UK over the past three years and we will continue to look for attractive opportunities in Western Europe. The initial portfolio, acquired at a substantial discount to replacement cost, offers an attractive running yield and various opportunities to add value through select capital expenditure and proactive asset management. We look forward to working with Richard and Mette to deliver on the business plan.”

The JV will be asset managed by M7’s Denmark office, which is led by Mette Seifert. GVA Nybolig advised DaRE whilst RealKredit Danmark provided senior debt to the JV.