Starwood Capital and M7 Real Estate have put their European multi-let light industrial joint venture up for sale for more than €450m (£401.2m).
The MStar portfolio of 49 assets across Germany and the Netherlands totals around 7.7m sq ft and the asking price reflects a yield in the region of 6%.
The duo have appointed Eastdil Secured to market the portfolio.
Target to invest
Starwood and M7 first tied up in 2013 with a target to invest £100m in the UK light industrial market and this was expanded the following year with a €500m joint venture to buy on the Continent.
Much of the investment made by Starwood comes from the $5.6bn (£4.3bn) Starwood Global Opportunity Fund X, which held a final close in 2015.
The investments have come to their natural maturity and Starwood is looking to take advantage of the rising demand for last-mile assets that are increasingly being occupied by online retailers.
In January MStar was refinanced by Morgan Stanley with a €313.9m loan. The portfolio was valued then at €450m. The €220.9m loan was subsequently syndicated by the investment bank in a CMBS known as EloC 31 LIBRA DAC in June.
Acquisitions
MStar made a series of portfolio acquisitions since its formation including the take-private of the £53.6m Tamar European Industrial Fund in 2014.
The majority of that portfolio and other assets, including a €112.5m French portfolio sold to Blackstone at the start of last year, have already been divested with the latest sale representing the remainder of MStar.
Blackstone, which is being advised by CBRE, is understood to be running the rule over the portfolio for its multi-let industrial strategy, which is also managed by M7.
Photo by Image Source/REX/Shutterstock
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