M7 Real Estate announcesd the sale of Aerozone Logistics Park in Budapest, Hungary, to a South African investor, JTRoss Group on behalf of M7 Central European Real Estate Fund I (M7 CEREF I).
M7 acquired the asset, which comprises 50,000 sqm of multi-let logistics space across three main units with an additional 15,000 sqm of office accommodation, in March 2017. Having implemented a comprehensive asset management strategy, M7 has let 10,000 sqm of vacant space, increasing the occupancy of the logistics and office space to 100% (up from 80%) and 75% (up from 50%) respectively since acquisition.
New occupiers include a global financial and retail technology business and a logistics provider. Over 50% of existing leases on the park have also been renewed and extended on improved terms over the period.
Balazs Magyar, Managing Director of M7 Hungary, said: “We remain very active in Central Europe, including in Hungary where we manage c. €100 million of office and industrial assets. We are seeking new investments in all sectors where we can use our asset management skills to enhance value.“
Paul Betts, Managing Director M7 CEE, commented: “We have now disposed of nine of the 21 assets in M7 CEREF I, with a further six assets under offer. We expect to dispose of the remainder before the year end. These disposals are happening in tandem with an acquisition programme where we have added €120 million of assets to the M7 POLAF I fund in the last three months. The Central European markets continue to grow and offer attractive returns for our investors.”