European real estate investor and asset manager M7 Real Estate has announced the final close of its third European investment fund, M7 European Real Estate Investment Partners III (M7 EREIP III), having received total commitments of 鈧�125 mln.
The equity raising gives the fund a gross acquisition capacity of 鈧�300 mln.
Richard Croft, M7鈥檚 Chief Executive said: 'M7 EREIP III is M7鈥檚 largest fund to date, raising funds from third- party US and Asian investors.'
Simultaneously, M7 has acquired a portfolio of seven industrial assets for the fund for 鈧�34.85 mln, reflecting a net initial yield of 9.74%.
In total, M7 EREIP III has now transacted on 鈧�204 mln of acquisitions with an average yield of 10.7%.
The 750,374 sq ft (70,000 m2) portfolio, known as Zenith, was acquired from a joint venture managed by Goldman Sachs and Valad Europe and comprises seven assets across the Netherlands. These include both distribution and multi-let, light industrial properties across a series of industrial locations including Amersfoort, Hoofdorp, Delfgauw and Schiedam.
The portfolio currently produces 鈧�3.7 mln of rental income per annum and has a weighted average unexpired lease term (WAULT) of 2.79 years. Existing tenants include a number of large companies such as PostNL, watchmaker Seiko, the German car parts manufacturer ZF Group, Impco-Beru Technologies and TNT.
The acquisition brings M7 EREIP III鈥檚 total portfolio to 3.8 million sq ft across 45 assets. The fund has a further 鈧�70 mln of assets under offer.
