M7 snaps up industrial portfolio

M7 Real Estate has acquired a portfolio of 11 light industrial assets in Hungary and the Czech Republic on behalf of M7 CEREF. The industrial property investment manager bought the assets from a joint venture between Partners Group and Cromwell Property Group. M7 has now acquired 19 properties with a total value of €128.5m (£112m) on behalf of the fund, which invests in core-plus and high-yielding regional opportunities across CEE, since the final close was completed in April 2017. The total value comprises the fund’s €60m investment target and a €68.5m senior debt facility from Starwood European Real Estate Finance. The portfolio provides M7 CEREF with stable rental income and opportunities to create value through the leasing of vacant units, targeted capital expenditure and lease extensions with existing tenants to enhance the WAULT. David Ebbrell, chief investment officer at M7, said: “We believe that a revitalised asset management strategy for this portfolio will enable us to capitalise on current occupier conditions in the region.” Karol Pilniewicz, head of CEE at Cromwell Property Group, said: “The sale of this portfolio is in line with the business plan we had agreed with our investor prior to the acquisition of the fund. Since acquiring the portfolio in early 2016, we have generated a 26% return for our partner.” To send feedback, e-mail amber.rolt@egi.co.uk or tweet @AmberRoltEG or @estatesgazette