M7 Real Estate has acquired a portfolio of 11 light industrial assets in Hungary and the Czech Republic, on behalf of M7 CEREF I, from a joint venture between Partners Group and Cromwell Property Group. The portfolio comprises 209,832 sqm, with seven of the assets located in Hungary and the remaining four in the Czech Republic.
M7 has now acquired 19 properties with a total value of circa €127.5 million on behalf of CEREF I, which invests in Core Plus and high yielding regional opportunities across CEE, since the final close was completed in April 2017. The target raise of €60 million of investor capital was reached and a senior debt facility of €68.5 million entered into with Starwood European Real Estate Finance.
This latest portfolio comprises 209,832 sqm across 276 units, with a 23.6% vacancy. Seven of the assets are located in Hungary, while the remaining four are in the Czech Republic.
The portfolio provides M7 CEREF I with both stable income from an existing tenant base, and also offers significant opportunities to create further value through the leasing of vacant units, targeted capital expenditure and lease extensions with existing tenants to enhance the WAULT.
David Ebbrell, Chief Investment Officer at M7 said, "We believe that a revitalised asset management strategy for this portfolio will enable us to capitalise on current occupier conditions in the region. The equity we raised in April has been efficiently deployed as we continue to secure properties where significant capital and income upside can be achieved which will deliver strong returns for the Fund."
