M7 Real Estate has raised €16m in a first close for its first Continental European real estate fund for third-party investors.

The M7 European Real Estate Investment Partners I fund is aiming to raise a further €24m.

M7 said that, with leverage, the fund would buy €100m of assets across Germany.

Richard Croft, chief executive, said the company was looking to put investor equity to work “immediately”.

“Capital-raising for our funds is asset specific,” Croft said.

“Since we have identified additional investment opportunities, we anticipate a second and final equity close in August.”

A 38,350 sqm portfolio has been sourced for the fund for €46m.

The eight-asset portfolio, which is being bought at an 8.7% yield, includes four supermarkets, three retail warehouses and a retail park. 

The purchase is scheduled for completion in September.