M7 Real Estate, a pan-European real estate investor and asset manager, announces has completed the acquisition of 12 assets in Hungary through four transactions for a total of €80.1 million in 2017. It brings M7's Assets Under Management in Hungary to € 89.3 million. It has also completed 32 new lettings and lease renewals across its Hungarian portfolio.
Since making its first investment in Budapest in December 2016 M7 has grown its portfolio in Hungary, which comprises predominantly multi-let logistics, retail assets and business parks, to 270,000 sqm of gross lettable space. Four acquisitions, including one portfolio acquisition, were undertaken in 2017, of which the largest assets were Aerozone Business Park and The Liget Center, an office building.
In addition, M7 has agreed 32 new lettings and lease renewals across approximately 75,000 sqm of space, bringing the total occupancy of the whole portfolio to 83% and extending the average lease length by 30% to an average of 2.7 years. Major lettings include the leasing of over 10,000 sqm of space at Eger Business Park 2 to Robert Bosch Automotive GmbH, the global manufacturer of steering systems for passenger cars and commercial vehicles, which was the largest leasing deal in North-Eastern Hungary in 2017. Additional transactions include a lease extension of 5 years secured with METRO Cash & Carry at the Aerozone Business Park and an 11,500 sqm letting at the Dunaharaszti Industrial Park to an international logistics service provider.
This activity has been completed on behalf of the M7 Central European Real Estate Fund I, circa 65% of which is invested in Hungary, where the portfolio is expected to generate an attractive income profile and significant capital profit. The Fund is invested in both Core Plus and high yielding regional opportunities across major cities in the Czech Republic, Croatia, Hungary, Poland and Slovakia.
Balázs Magyar, Managing Director of M7 in Hungary, commented: "We have successfully and very efficiently grown our portfolio in Hungary and secured a number of major lettings and lease renewals at improved terms. We have also identified active asset management initiatives, which we expect to generate attractive returns and build on the strong performance we have delivered in 2017."
