M7 Real Estate has invested in a light industrial portfolio in central and eastern Europe sold by Partners Group and Cromwell Property Group.

The 11 assets, seven of which are in Hungary and four in the Czech Republic, were bought by M7 for its central European fund CEREF I.

David Ebbrell, chief investment officer at M7, said: “We believe that a revitalised asset management strategy for this portfolio will enable us to capitalise on current occupier conditions in the region.

“The equity we raised in April has been efficiently deployed as we continue to secure properties where significant capital and income upside can be achieved which will deliver strong returns for the fund.”

The 209,832sqm portfolio is 23.6% vacant.

M7 has now bought 19 properties worth around €127.5m for CEREF I, which invests in core-plus and high yielding regional opportunities across central and eastern Europe.

Karol Pilniewicz, head of CEE at Cromwell Property Group, said that since acquiring the portfolio in early 2016, it has generated a 26% return.