M7 Real Estate has announced the launch together with an undisclosed private equity partner of a new joint venture focusing on office and industrial deals in Portugal.
The new venture – the Portuguese Investment Fund - has just completed its first acquisition with the purchase of ten industrial and office assets for a total of €41 mln.
Portuguese bank, Novo Banco, has provided a €20.55 mln loan facility to finance the acquisition of the portfolio, marking a new banking relationship for M7.
PIF targets primarily logistics and office assets in Portugal with M7 acting as both investment and asset manager. The vehicle is M7’s second in Portugal where it manages a total of €132 mln of assets, including on behalf of the M7 Portuguese Active Fund (M7 PORAF), which targets value add real estate opportunities in regional Portuguese markets and is fully invested.
The 85,600 m2 portfolio, acquired by M7 on behalf of PIF, was assembled through two separate transactions and comprises five last mile logistics assets predominantly located in Lisbon and Porto; three office buildings in Lisbon; and two solus retail warehouse units in Greater Lisbon and Madeira.
M7 will implement an active asset management strategy to lease up the vacant space across the portfolio, which is 95% let, and grow rental income, taking advantage of low vacancy rates in the Lisbon office and industrial markets and the robust demand for industrial space in areas of strong connectivity from the rise of e-commerce.
David Ebbrell, Chief Executive of M7 Real Estate, commented: ‘The formation of PIF with our partner and the establishment of a new banking relationship with Novo Banco mark significant strategic milestones for M7, as we continue to grow our business internationally.’
