M7 Real Estate has made a final close on its third European investment fund.
It has received €125m in commitments from investors, providing the M7 European Real Estate Investment Partners III fund with a capacity of €300m including leverage.
As the fund closed, it made an investment of €34.85m at a yield of 9.74% across seven industrial assets. The 750,374 sq ft Zenith Industrial portfolio was bought from a jv of Goldman Sachs and Valad Europe, taking the total invested by the fund to around €204m at an average yield of 10.7%.
The fund now owns 45 assets, with a further €70m under offer.
M7 chief executive Richard Croft said: “M7 EREIP III is M7’s largest fund to date, raising funds from third-party US and Asian investors totalling about €125m. We are very pleased with the Dutch and German assets that have been acquired, which provide a strong mix of core income coupled with opportunities to drive value through refurbishments and rental growth.
“We look forward to working with this portfolio to develop high-quality assets that produce meaningful income and total returns for our investors.”
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