Pan-European investor and asset manager M7 Real Estate has invested €36 mln in nine office and retail assets across the Netherlands.
The properties were acquired on behalf of the M7 European Real Estate Investment Partners IV fund. ‘Together these nine assets offer strong and diverse income profiles, as well as a range of opportunities to enhance their capital and rental values,’ said CIO David Ebbrell.
Seven of the assets were acquired from Valad, including the Landmark Portfolio for €8.9 mln and the Sports Business Centre for €14.27 mln. The Landmark Portfolio comprises 20,391 m2 of office accommodation across six assets in core Dutch office markets such as Utrecht, Amersfoort and Den Bosch, and in city centres in Heerlen and Gouda. The portfolio is 47% occupied and M7 plans to refurbish it and let the vacant space.
The Sports Business Centre is a 20,305 m2 exhibition and business-to-business retail centre in Leusden, near Utrecht, providing a strong and diverse income profile with opportunities to add further value through asset management, M7 said.
The other two acquisitions are the Leyweg Den Haag retail centre, a parade of 35 units in a suburb of The Hague, bought for €9.7 mln, and Australielaan 14-16/Vrieslantlaan 1-3 in Utrecht, a fully let 5,119 m2 office building in Utrecht, for €2.85 mln. Both provide stable and diversified income streams for investors through high occupancy and a strong tenant mix, M7 said.
M7 financed the portfolio through a €143.4 mln, 65% LTV senior debt facility that was agreed with Bank of America Merrill Lynch late last year. TheM7 EREIP IV fund, which was launched with a €175 mln first close last October, now includes €265.8 mln in investments in 62 assets in Finland, Germany, Ireland and the Netherlands.
‘We have a strong pipeline of further potential acquisitions in place across the continent,’ said Ebbrell.
‘That we have been able to deploy such a significant tranche of equity so soon after the launch of EREIP IV is a strong endorsement of the ability of our pan-European platform to quickly identify and transact on the most compelling investment opportunities to create real value for our investors.’
