European investor and asset manager M7 has acquired an office building in south east Poland.
Financial details were not disclosed. The vendor in the transaction was a private investor.
The acquisition was made on behalf of the M7 CEREF II fund, focusing upon office and industrial properties in key Central European markets. The transaction was the first for the fund.
Located in the city of Katowice, the asset is a multi-tenanted modern office building comprising 12,672 sq ft (1,112 m2) over seven floors and with 183 car parking spaces. It is let to eight tenants including Santander, Capgemini and SGS.
Katarzyna Parkot, managing director of Poland at M7 said: ‘The major central European economies have continued to grow strongly over recent years and this particular asset, while in line with our strategy of investing in offices with upside potential through active asset management, also benefits from a defensive income profile and diversified occupier line up. The acquisition is also reflective of our ability to execute transactions in more challenging situations.
‘We are seeing a structural shift in the Central European office and logistics markets, particularly in expanding urban centres where vacancy rates have significantly reduced due to limited supply. This is leading to strong rental growth that we are seeking to access on behalf of our investors.’
M7 CEREF II has held its first close and is targeting further closes to raise up to €100 mln during Q3 2020. The target size of the fund is circa €150-€200 mln with leverage and a significant pipeline of potential investments has been identified across the region.
