M7 Real Estate’s European value-add and core-plus fund has added 22,000sqm of logistics assets in Croatia to its portfolio.
The pan-European investor and asset manager said it has bought two fully-let urban logistics assets, both on Slavonska Avenue, Zagreb, on behalf of the M7 CEREF II fund.
The first asset is a 14,000sqm property located just to the north of Slavonska Avenue and the second asset is an 8,000sqm asset located to the south of Slavonska Avenue.
Financial details were undisclosed.
M7 said the latest transaction is the fund’s first acquisitions in Croatia. M7 CEREF II has so far acquired seven assets totalling 85,000sqm across Croatia, Hungary and Poland.
Mirta Ceranac Poljak, managing director, Croatia at M7 Real Estate, said the latest transaction demonstrates the firm’s commitment to the Croatian market and its ability to execute acquisitions.
Poljak said since establishing a presence in Croatia at the end of 2016, when M7 acquired MANI Business Park, on behalf of M7 CEREF I, M7 Croatia now has €50m of assets under management.
“There is continued demand for modern urban logistics assets, especially when combined with office space, and these acquisitions provide a strong addition to the M7 CEREF II portfolio.
”We are seeing a structural shift in the Central European office and logistics markets, particularly in expanding urban centres where vacancy rates have significantly reduced due to limited supply. This provides an attractive opportunity for growth that we are seeking for our investors.”
M7 CEREF II’s strategy involves targeting value-add and core-plus logistics, industrial and office investments in the key Central European markets of Poland, Hungary and Croatia.
To read the digital edition of the latest IPE Real Assets magazine click here.
