M7 Real Estate has raised its first Central European fund, M7 CEREF I, securing investor commitments worth 鈧�35 mln.
'As our first fund focussed entirely on Central Europe, M7 CEREF I is an important milestone in the continued expansion of the M7 business, and a strong endorsement of the level of local knowledge and expertise across our pan-European management platform. Our network of offices means that we are very strongly positioned to identify and maximise investment opportunities in line with the fund strategy,' said M7 CEO Richard Croft.
Following the initial raise, M7 CEREF I has acquired Oregon House in Prague for an undisclosed sum.
The modern office property, located in the 13th district of Prague, comprises 14,330 m2 of space and is currently 68.3% let to a range of tenants including Schindler CZ, Proceram and IKEA. It produces a passing rent of 鈧�1.5 mln per annum.
M7 said it would deploy a number of asset management initiatives in line with the fund's strategy, including a targeted capital expenditure programme, the letting of void space and lease regears and extensions with existing tenants.
M7 CEREF I is M7鈥檚 first Central European fund for third party investors and will target both core plus and high yielding regional opportunities across major cities in the Czech Republic, Croatia and Hungary, Poland and Slovakia.
Investments will be sourced across all sectors and will be managed by M7, through its pan-European platform, which was first established in the CEE region in early 2014 with an office in Warsaw which has subsequently expanded to include offices in Prague, Zagreb, Budapest and Bratislava.
'We are intending to have a second close before the end of 2016, ultimately targeting a net investment capability of 鈧�130 mln for the fund and we expect to announce further acquisitions soon,' Croft concluded.
