M7 Real Estate has put up for sale a €1.5bn (£1.3bn) portfolio of office and industrial assets.
The process, known as Project Meg, is being led by Eastdil Secured. It comprises around 300 assets totalling 20m sq ft, predominantly in Germany and the Netherlands. The asking price reflects a yield of around 7%.
The assets are mainly multi-let infill properties located in urban areas, many of which have asset management opportunities to convert to alternative uses such as residential.
The properties are being divested by a series of M7-managed discretionary funds that have been backed by a variety of private high net worth individuals and family offices. A large chunk of the assets are coming from M7 EREIP IV, the firm’s €400m fund which reached a final close in November last year.
M7 is in the process of building a large urban logistics platform alongside Blackstone, but Project Meg does not include any Blackstone-backed assets.
The highly diversified income from the portfolio is understood to have already attracted interest from parties including Goldman Sachs, Oaktree Capital Management, Centerbridge Partners, Ascendas, KIC, Lone Star and Canadian pension funds.
Eastdil is also in the process of sourcing around €1bn of staple finance that is attracting interest from a range of investment banks, which would reflect a loan-to-value of 66.7%.
M7 itself is currently up for sale through Eastdil, with the €7.2bn fund and asset manager having kicked off the process in March.
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