Pan-European asset manager M7 Real Estate has acquired around €213 mln of property assets in Finland, Germany and the Netherlands on behalf of its M7 European Real Estate Investment Partners IV fund.
M7 has acquired two portfolios, one in Finland and one in the Netherlands which together provide a total of 85,760 m2 across 18 assets and generate a blended NIY of 9.3%.
The Finnish portfolio has been acquired from Real Estate Fund Finland I managed by OP Property Management and comprises three retail, two office and seven industrial assets totalling around 64,000 m2. The properties are located across Finland but with the majority in and around Helsinki. The void rate is 29% and WAULT is 2 years, providing the opportunity to lift income through asset management initiatives.
The Dutch portfolio comprises six urban logistics properties totalling close to 22,000 m2 in locations across the Randstad region in the western netherlands with a blended occupancy rate of 94%.
The two portfolios mark the first acquisitions for the M7 EREIP IV fund, which at its first close in September 2016 raised over €175 mln, giving a total investment capacity in excess of €400 mln.
In addition to completing on these two portfolios, M7 has exchanged contracts on the acquisition of a further 35 office, logistics and retail assets for €151 mln, bringing EREIP IV’s total phase 1 investments to around €213 mln. The assets, which are located across Finland, Germany and the Netherlands, are being acquired by M7 in four further separate transactions at a combined NIY of 9.2%.
M7 CEO Richard Croft said that after deploying the first tranche of investor capital, the company 'expects to have senior debt in place shortly to enable a second phase of acquisitions and will then be following this up with a further equity close later in Q4 2016'.
