M7 secures €31m financing for 1st European fund, eyes more acquisitions

M7 Real Estate has secured €31 mln of senior financing from German lender Berlin Hyp for its first European vehicle, European Real Estate Investment Partners I (M7 EREIP I).

The financing comes weeks after the pan-European investor and asset manager purchased eight retail assets in Germany for the fund.

M7 EREIP I paid about €47 mln, reflecting an initial yield of 8.5%, for the 33,800 m2 portfolio. The majority of the assets are located in Lower Saxony and the vacancy rate is 7%.

M7 is the investment adviser and asset manager to the fund, and has about 20 additional retail assets under offer for the vehicle. These acquisitions are expected to close in early 2016. M7 said it is in discussions with Berlin Hyp about the financing of these acquisitions as it looks to expand its relationship with the bank further.