Starwood Capital and M7 Real Estate’s MStar Europe joint venture has completed the purchase of five assets in Germany from Valad for €44.7m.
The two companies said the 100,000sqm portfolio was spread across Frankfurt, Cologne, Hamburg and Dusseldorf.
A total of nine light industrial warehouse properties worth €57.6m will be added to the partnership’s investment book.
The portfolio includes three assets in Dortmund, Herne and Kassel, bought for €7m, as well as a €5.8m investment in Dormagen.
In all, the properties add 147,000sqm to the companies’ portfolio.
M7, which also partners Oaktree Capital, HIG Capital and M&G Investments, will asset manage the portfolio.
Adam Shah, senior vice-president at Starwood Capital Group, said the company viewed light industrial as a “defensive asset class”, with sector and credit-risk diversification benefits.
The MStar joint venture has also bought in the Netherlands, buying 10 warehouses from Rockspring for €71m.
The partnership has also this year completed the buyout of Tamar’s listed European Industrial Fund.
The fund owns 36 assets worth €130m in Belgium, France, Germany, the Netherlands and Sweden.
The venture has a €500m target for its European investment programme.
In the UK, the two companies have jointly invested in 27 properties with a value of £70m since launch in June last year.
M7 recently recruited Chris Pope as managing director of a new French office.
Pope was head of portfolio management in PATRIZIA’s Paris office, where he oversaw asset management for the Tamar European Industrial Fund.
