MStar JV snaps up €74m of German and Dutch industrial property

MStar Europe has agreed a deal to acquire 17 light-industrial properties in Germany and the Netherlands for a total of €74.5 mln.

The joint venture between M7 Real Estate and Starwood Capital has bought nine properties in Cologne, Düsseldorf, Cologne and Stuttgart and six in the Dutch Randstad conurbation, with two further transactions pending completion. The assets comprise a lettable area of approximately 181,000 m2 with 92.3% occupancy.

Adam Shah, senior vice-president at Starwood Capital Group, said: 'These assets will be part of a portfolio that already generates healthy cash flows for our investors, and which offer the opportunity to further enhance returns through management initiatives steered by our experienced team and that of our joint venture partner.'

MStar Europe was established in April 2014 with the aim of investing up to €500 mln in high-yielding light-industrial property.

To date it has purchased 36 assets directly for €203 mln and bought out the listed Tamar European Industrial Fund with an offer valuing the assets at around €130 mln. The total portfolio consists of 72 assets in five countries, with approximately 765,000 m2 of space.

M7 Real Estate advised on the purchases and will manage the assets.

David Ebbrell, head of transactions at M7 Real Estate, said: 'We are actively looking for fresh investment opportunities in the light industrial, multi-let property space in the main Western European markets so that MStar Europe will be fully invested later this year.'