M7 Real Estate’s dedicated Portuguese fund has bought its first portfolio of assets in a deal worth €55.7m.
M7 Portuguese Active Fund (M7 PORAF) bought the 16 assets across Portugal from six vendors.
The 100,999sqm of assets comprise multi and single-let urban logistics assets (48%), office and business parks (22%) and retail parks (30%).
M7 said the portfolio, which is 87.8% occupied by 41 tenants, present an opportunity to add value by improving occupancy and capturing reversion through active asset management, selective capital expenditure and refreshed marketing initiatives.
In January, M7 fully invested for its dedicated French fund and said it is in the process of replicating the fund’s strategy in Poland and Portugal.
Leonardo Peres, MD of M7 Real Estate Portugal, said the deal is the first tranche of assets for M7 PORAF, M7’s new Portuguese fund.
M7 PORAF will continue to target value-add regional real estate in the core regions of Portugal including Greater Lisbon and Porto, the manager said.
“These acquisitions demonstrate M7’s ability to identify assets, both on and off market, where there is an opportunity to create additional value, Peres said.
“They provide a strong and diverse income stream and there is also a range of opportunities to enhance capital and rental values through a targeted asset management programme.”
Peres said the fund has identified a strong pipeline and expect to announce further acquisitions shortly.
