M7 Real Estate has recently sold three assets, Innovations Business Park in Budapest, Hungary and Sanitas Industrial Park and Uhrineves Industrial Park both located in Prague, Czech Republic, for a total of circa €24 million, delivering investors a strong increase in value.
Innovations Business Park was acquired by M7 in June 2017. The team identified the property and location as having the potential for market-driven capital value growth as well as some value-add asset management, including improving occupancy from 90.6% to 100%, and increasing rental income. The property, which is located on the Váci corridor, 7 km north of Budapest city centre in the 13th district, comprises 4,160 sqm of good quality multi-let warehouse and storage space across eight units, as well as a retail unit with road frontage.
The second property, Sanitas Industrial Park, was acquired by M7 as part of a portfolio, in May 2017. The asset is located in Říčany, approximately 20 km south-east of Prague city centre and adjacent to a Tesco-anchored retail park and provides 46,796 sqm of GLA across a standalone warehouse unit and two storey office building. The asset has been sold in line with the business plan.
Uhrineves Industrial Park is located in Uhrineves, a town situated approximately 18 km south-east of Prague in an established industrial area with good road access. Uhrineves Industrial Park provides 8,146 sqm of GLA across two buildings with a central courtyard. One building provides warehouse units and the second one warehouse units together with two storey offices. The opportunity arose to sell to a potential owner-occupier which was an option identified in the business plan.
Paul Betts, MD Central Europe at M7, commented: “Having acquired these assets as part of a portfolio transaction just over a year ago, we believe that now is the right time to crystallise the value that each has delivered in the intervening period and in line with our business plans and our targeted returns for the Fund.”
M7 CEREF I invests in Core Plus and high yielding regional opportunities across CEE. The final close was completed in April 2017, the target raise of €60 million of investor capital having been met alongside the agreement of a senior debt facility of €68.5 million provided by Starwood European Real Estate Finance.
