Asset manager M7 Real Estates has raised around €30m from investors at the first close of its dedicated French fund.

The pan-European real estate investor said M7 French Active Fund (M7 FAF) has seeded the fund with an initial acquisition of a portfolio of 23 assets in Greater Paris for €60.15m.

The seed portfolio, which comprises multi and single-let urban logistics assets and business parks, offers 80,098sqm of accommodation and an initial yield of around 7%.

The portfolio is 73.5% let and presents an opportunity to add value and improve occupancy through active asset management, selective capital expenditure and refreshed marketing initiatives, M7 said.

Richard Croft, the chief executive officer of M7 Real Estate, said: “The funds raised have been immediately deployed into a portfolio of income-producing assets which present an opportunity for M7 to apply its asset management expertise to drive returns for investors.

“We have an exciting pipeline of further acquisitions which will conclude in line with a second fund close.”

M7 FAF, which received commitments from high net worth, family office and institutional investors based in Asia, the US and Europe, is expected to have a second close during the next quarter.

M7 FAF will target high yielding regional real estate in core regions of France, including Greater Paris, Marseille and Lyon.

Investments will be focused primarily on assets occupied by small and medium-sized enterprises.

M7, which opened an office in France in 2014, currently manages 26 assets in France for other M7 vehicles focused on the multi-let light industrial sector.