Pan-European investor and asset manager M7 Real Estate has fully deployed the capital raised on behalf of M7 CEREF II, its value-add fund targeting logistics and office investments in key Central European markets.
The final acquisition is Pallag 43, a modern, last mile logistics asset in the north of Budapest, Hungary acquired from a private investor for €9.6 mln.
David Ebbrell, CEO M7, commented: 'We are very pleased to have assembled an attractive portfolio of logistics and office investments across Central Europe with upside potential.
'Our team on the ground is already underway executing our asset management plans across the portfolio, leveraging our expertise in this area.'
Pallag 43, which comprises 11,152 m2 of distribution warehouse space, is fully let to Autonet, a multi-national supplier of automotive parts, on two separate leases which are due to expire in 2022 and 2026.
The warehouse is easily sub-divisible, enabling potential future conversion to multi-let. The asset is well placed to benefit from the favourable occupier dynamics in the Hungarian logistics market, with vacancy at record low levels.
M7 CEREF II, which was launched in 2020, will close with a portfolio of nine assets acquired for €91 mln, split 40/40/20 across Poland, Hungary and Croatia and split evenly between logistics and office space.
Added Ebbrell: 'Strong GDP growth and rising e-commerce in Central Europe is fuelling a sharp increase in the demand for logistics space, particularly in last mile locations.
'Pallag 43 is a high quality asset that is situated in close proximity to Budapest city centre, where an extremely low vacancy level of less than 2% is placing upwards pressure on rental values.'
