News Article Croatia Erste M7 Real Estate office SEE Zagreb
by Property Forum | Office

M7 Real Estate has refinanced a €4.8 million debt facility secured against the Mani Business Centre in Zagreb, Croatia with Erste Bank Zagreb following the completion of M7’s successful asset management strategy for the property.

M7 acquired the Mani Business Centre, a 13,915 sqm multi-tenanted office building, in December 2016 on behalf of M7 Central European Real Estate Fund I (CEREF I). Following the purchase, M7 focused on improving the appeal of the property through selective capital expenditure, remarketing the property in order to lease up vacant space and engaging with existing tenants to improve relationships.
As a result, the occupancy has increased significantly to 91% from 54% at the time of the acquisition, the tenant retention rate has improved to 100% and the WALT has been more than doubled to 3.4 years from 1.4 years. The current passing rent is approximately €980,000 p.a. providing a circa 20% yield on debt.
Mirta Ceranac Poljak, Managing Director of M7 Real Estate in Croatia, commented: “We envisage the M7 the partnership with ERSTE Bank to be replicated with future investments we make in Croatia and other CEE markets.”
Boris Centner, Member of the Management Board of Erste Bank said; "Our client, M7, is a leading specialist in the real estate market in Europe and the region and we are extremely pleased to have provided financial support to them to help them realise their business plans. Erste Bank aims to provide the best support for its customers, striving to individually tailor a package of financial services that will effectively help their business. Of course, this applies not only to a broad range of bank products, but also to the entire Erste Group in Croatia. "