M7 has raised its second Continental European Real Estate fund and bought over 40 Dutch offices, sheds and shops.
The pan-European investor and asset manager specialised in multi-let properties, has raised over €40m (£28.6m) of equity and loan note issuance for the fund from investors including a US-based multi-strategy private equity firm together with a number of existing M7 investors.
The fund, M7 European Real Estate Investment Partners II (M7 EREIP II) has purchased a portfolio of 42 assets in three individual acquisitions, including the Spring Portfolio that originated from a non-performing loan.
The purchases comprise a total of 1,460,533 sq ft of space and were made from three different vendors.
The combined purchase price was over €82m (£58.5m) representing an initial yield of approximately 11%, with a vacancy rate of c.25%.
The assets are located throughout the Netherlands and comprise a mixture of multi-let office, local retail and light industrial property.
Deutsche Bank provided the senior debt facility.
M7 will act as investment adviser and asset manager to the fund.
Richard Croft, M7 Real Estate’s Chief Executive Officer, said: “This portfolio provides a combination of exciting value add opportunities together with some longer let assets. This enabled us to source attractive senior financing and offer our investors either an attractive bond return or more value add equity return”.
M7 has also had a second close for its first European fund (M7 EREIP I) taking equity commitments to approx €23m and has notarised a second portfolio taking the fund’s gross asset value to approximately €55m. A third and final close is expected in mid-November, to acquire the vehicle’s third portfolio.
M7 were advised by Ringstate on the acquisition of the Spring portfolio.
