M7 Real Estate has launched its first fund targeting central and eastern Europe.
M7 Central European Real Estate Fund I is expected to have a total investment capability of €130m (£118m) including around 50-55% leverage.
It will target both core-plus and high-yielding regional opportunities across major cities in the Czech Republic, Croatia and Hungary, Poland and Slovakia. M7 has offices in Warsaw, Prague, Zagreb, Budapest and Bratislava.
The fund has held a first close of €35m, receiving commitments from a number of family offices and high net worth individuals. It has already made its first purchase – Oregon House, a 154,247 sq ft office building in Prague that is 68.3% let.
M7 said: “In line with the fund’s strategy, the asset provides significant opportunities for M7 to drive income through a series of asset management initiatives, including a targeted capital expenditure programme, the letting of void space and lease re-gears and extensions with existing tenants”.
Richard Croft, M7’s chief executive said: “As our first fund focused entirely on central Europe, M7 CEREF I is an important milestone in the continued expansion of the M7 business.
“We intend to have a second close before the end of 2016, and expect to announce further acquisitions soon.”
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