M7 Real Estate, the pan European investor and asset manager, has raised €400 mln of equity commitments for its latest and largest European investment fund.
London-based M7 confirmed the equity tally when announcing the final close on Friday for its fourth European investment fund, M7 European Real Estate Investment Partners IV (M7 EREIP IV).
The commitments were obtained from a 'wide investor base', M7 said in a statement. With over 30 investors, M7 has broadened its investor base which includes two major US investors and a number from other jurisdictions including Hong Kong and the Middle East.
The final raise provides M7 EREIP IV, M7's largest fund to date, with a total investment capacity of over €800 mln, including debt financing. Some €500 mln of real estate has already been acquired and the fund has identified a further pipeline of about €250 mln of assets.
'This is M7's largest fund so far and we have successfully continued to raise investor capital from a number of sources which demonstrates their belief in M7’s strategy and execution,' said M7 CEO Richard Croft. 'The capital is being actively deployed and we have a number of asset management initiatives underway which will deliver value and attractive investment returns for our investors.'
M7 EREIP IV is continuing to target value-add multi-let commercial real estate opportunities in Germany, the Netherlands, France and Scandinavia which are sourced and managed by M7, through its pan-European platform. It is anticipated that the Fund will be fully invested by the beginning of 2018.
Listing cancelled
Separately on Friday, M7 announced the cancellation of the planned IPO of M7 Multi-Let REIT.
The new UK investment company had hoped to raise £300 mln (335 mln) and use some of the proceeds to acquire 93 assets for £120 mln. But M7 said investors wanted to do a deal privately rather than via the stock exchange.
'A number of investors expressed an interest in acquiring the initial portfolio privately. This, combined with the current market conditions and the volume of recent issuances focusing on UK real estate, led the board to conclude that the initial portfolio and pipeline would be better funded privately over the near to medium term,' said Croft said.
The option of reactivating the IPO may be considered again over the next 12 months, Croft added.
