M7 Real Estate has secured €80m in commitments for its latest European real estate fund.
The fund has already invested in secondary cities in Germany and the Netherlands.
The pan-European investment manager said it was the largest fund close it had achieved.
Richard Croft, CEO of M7, said: “As our largest to date, this fund raise from institutional and family office investors, is another milestone in the continued expansion of our business.”
He added: “We are intending to have a second close during the first half of this year and are targeting a gross investment capability of circa €330m for the fund.
“We have already identified and/or are under offer on a number of other transactions and we intend to be fully invested by [the middle of the year].”
M7 European Real Estate Investment Partners III has exchanged contracts on €130m of acquisitions of three portfolios and a single asset.
The fund has bought 21 assets in total, including six multi-let offies in German secondary cities: Bonn, Dortmund, Duisburg, Hannover, Kassel and Koblenz.
The primary tenant in the six buildings is insurance company HUK Coburg, accounting for 70% of the income.
The other 15 assets are located in Dutch cities, including Rotterdam, Delft, Arnhern and Assen, comprising 11 offices and four retail properties.
David Ebbrell, head of transactions at M7, said: “These properties present plenty of opportunities to add value through straight-forward asset management initiatives and selected capital expenditure against a background of improving occupier sentiment, a pick-up in demand from occupiers and a shortage of good quality space in prime locations.”
