M7 acquires a further two assets in Budapest for M7 CEREF I
M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that it has acquired a further circa. EUR 20 million of assets in Budapest, Hungary, on behalf of its first Central European fund for third party investors, M7 Central European Real Estate Fund I (“M7 CEREF I” or the “Fund”). This follows the Fund completing its final close, reaching its target raise of EUR 60 million of investor capital in April 2017, as well as the agreement of a EUR 68.5 million senior debt facility with Starwood European Real Estate Finance.
M7 has acquired the Liget Center in Budapest from a fund managed by CBRE Global Investors. The property offers 10,863 sqm of high quality multi-let office space in the centre of Budapest, overlooking Városliget Park one of the city’s biggest parks, and provides additional stable income from a range of international tenants, as well as the opportunity to add further value through the renovation and leasing of the 3,779 sqm auditorium space. In addition, M7 has acquired a 24,598 sqm multi-tenanted industrial property in Gödöllő, Budapest, from Omega Real Estate Fund. Located circa. 30 km from the centre of Budapest, the property is currently 85 percent occupied to three international tenants, and M7 plans to add value through negotiating lease prolongations with existing tenants as well as repositioning of underutilised and void space.
David Ebbrell, Chief Investment Officer at M7 said, “As we continue to expand into CEE, these acquisitions are a further demonstration of the value that we see in the region, having now closed on a total of EUR 84 million of assets on behalf of M7 CEREF I. We have identified a further pipeline of acquisitions, and anticipate closing a further significant transaction in the near term.”