M7 Real Estate has finished raising capital for its debut central European fund.

M7 Central European Real Estate Fund I secured €60m of capital, following a €35m first close in October

M7 said it had acquired the 64,600 sqm Aerozone Logistics Park in Budapest, Hungary for the fund.

The modern, grade-A multi-tenanted logistics park, close to Budapest airport, was bought from CA Immo and Union Invest.

M7 has also agreed a €68.5m senior debt facility with Starwood European Real Estate Finance on behalf of the fund with an initial three-year term

The fund manager said this would enable it to make €65.5m of additional deals over the coming weeks and result in the fund being fully invested.

The Mani Business Centre in Zagreb, Croatia and Oregon House, Prague, which were both acquired immediately after the fund’s first close, are excluded from the Starwood debt agreement.

The fund targets core-plus and high yielding opportunities across major cities in the Czech Republic, Croatia and Hungary, Poland and Slovakia.

Richard Croft, M7’s chief executive, said: “Having put our first tranche of investor capital to work in October, the additional investor capital raised, together with the senior debt facility with Starwood, will allow us to proceed with the deals identified and to have the fund fully invested during the next three to six weeks.

“We have a number of asset management initiatives planned in order to drive value across the portfolio and deliver exceptional returns to our investors.”