M7 Real Estate has raised an initial €175m for its fourth European real estate fund.
The pan-European fund manager said the first close of the M7 European Real Estate Investment Partners IV was backed by investors from Hong Kong and the Middle East.
With leverage, the initial raise provides the fund with €400m to invest.
The manager is targeting value-add, multi-let assets in Germany, the Netherlands, France and Scandinavia.
Richard Croft, M7’s chief executive, said the fund “marks an important milestone in the continued expansion of the M7 business”.
“It is both our largest fundraise and underscores the appetite for income focused offerings underpinned by a risk diversified portfolio,” he said.
“We have already identified a pipeline of opportunities, with over €200m of assets under exclusivity, and will be looking to announce EREIP IV’s first acquisitions in the near term.”
Investments will be sourced and managed by M7, which recently opened an office in Luxembourg and plans to open a Finnish office by year-end.