European real estate investor and asset manager M7 Real Estate has raised its first dedicated French fund, with equity commitments of €30 mln from high net worth, family office and institutional investors based in Asia, the US and Europe.
M7 French Active Fund is expected to hold a second close during the next quarter. The vehicle has been seeded with a portfolio 23 assets in Greater Paris for €60.15 mln.
M7 FAF will target high-yielding regional real estate in core regions of France, including Greater Paris, Marseille and Lyon. Investments will be focused primarily on assets occupied by small and medium-sized enterprises. The fund will be managed by M7 with asset management services provided by M7’s French business, based in Paris.
The seed portfolio, which comprises multi and single-let urban logistics assets (43%) and business parks (57%), offers 80,100 m2 of accommodation with an initial yield of 7%. The portfolio is 73.5% let, presenting an opportunity to add value and improve occupancy through active asset management, M7 said.
'The real estate market in France is strong with positive occupier and economic trends,' commented Richard Croft, chief executive officer of M7 Real Estate. 'The funds raised have been immediately deployed into a portfolio of income-producing assets which present an opportunity for M7 to apply its asset management expertise to drive returns for investors. We have an exciting pipeline of further acquisitions which will conclude in line with a second fund close.'
M7 opened its Parisian office in November 2014. At present, M7 manages 26 assets in France for other M7 vehicles focused on the multi-let light industrial sector.
