M7 Real Estate, the pan-European fund manager owned by Oxford Properties, has sold a 42,000sqm commercial building in Germany on behalf of an unnamed US institutional investor.

M7 said it sold the asset, comprising a warehouse, office space and development land in Westerstede, northern Germany, to Ammerland Molkerei, a dairy farm cooperative. Financial details we not specified.

M7 acquired the asset in 2020 on behalf of Azure, a separate account mandate, which IPE Real Assets understands is managed on behalf of a US institutional investor.

The mandate was to acquire light industrial, land and logistics assets in Germany, Poland, Hungary and the UK.

M7 said the separate account was close to being fully exited.

Richard Fletcher, transactions director in Germany at M7 Real Estate, said: “This disposal illustrates our ability to execute innovative asset management strategies on highly specialised assets. Once we acquired the asset we executed our business plan, preparing the asset for sale with vacant possession to an owner occupier.

“We took advantage of the current liquidity in the market for smaller lot sizes, crystallising value for our investor. The property provides huge potential for the dairy cooperative to expand their business, being a specialist occupier from the local area. 

“Germany remains a key market for M7, as well as the UK and Nordics, and we have ambitions to grow by deploying capital into value-add, core-plus and core opportunities with a focus on the industrial and logistics sector.”

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