M7 Real Estate (“M7”), the pan-European investor and asset manager specialising in multi-tenanted properties, announces that it has fully deployed the capital raised on behalf of M7 CEREF II (the “Fund”), its value-add fund targeting logistics and office investments in key Central European markets. The final acquisition is Pallag 43, a modern, last mile logistics asset in the north of Budapest, Hungary acquired from a private investor for €9.6 million.
Pallag 43, which comprises 11,152 sq m of distribution warehouse space, is fully let to Autonet, a multi-national supplier of automotive parts, on two separate leases which are due to expire in 2022 and 2026. The warehouse is easily sub-divisible, enabling potential future conversion to multi-let. The asset is well placed to benefit from the favourable occupier dynamics in the Hungarian logistics market, with vacancy at record low levels.
M7 CEREF II, which was launched in 2020, will close with a portfolio of nine assets acquired for €91 million, split 40/40/20 across Poland, Hungary and Croatia and split evenly between logistics and office space. The major Central European economies have continued to grow strongly over recent years, resulting in the expansion of key cities such as Warsaw, Budapest and Zagreb. This has led to strong market dynamics for well-located office and logistics stock, particularly in central locations with good transport connections.
Established in 2009 M7 manages a portfolio of c.570 assets comprising 42.0 million sq ft of GLA with a capital value of circa €4.1 billion.
M7’s team consists of over 220 staff operating across a platform spanning 15 countries and territories comprising the UK, Croatia, Czech Republic, Denmark, Finland, France, Germany, Hungary, Hong Kong, Ireland, Luxembourg, the Netherlands, Poland, Portugal and Spain.
Source : M7