M7 joint venture fund makes its €41m Portuguese debut

Property investor and asset manager M7 Real Estate has acquired 10 industrial and office assets in Portugal in two deals totalling €41 million. The properties have been acquired for the Portuguese Investment Fund, a new joint venture between M7 and “a major, global private equity firm”.

The 85,600 sq m portfolio comprises five last mile logistics assets predominantly located in Lisbon and Porto; three office buildings in Lisbon; and two stand alone retail warehouse units in Greater Lisbon and Madeira.

M7 plans an active asset management strategy to lease vacant space across the portfolio, although it is 95% let, and to increase rental income. Vacancy rates are low in the Lisbon office and industrial markets and M7 said there is “robust demand” for industrial space in areas of strong connectivity from the rise of e-commerce.

M7 has obtained a €20.55 million loan facility from Portuguese bank Novo Banco to finance the acquisition.

Second Portuguese investment vehicle for M7

PIF, which will primarily target logistics and office assets in Portugal, is M7’s second vehicle in the country where it manages a total of €132 million of assets. The M7 Portuguese Active Fund targets value-add real estate opportunities in regional Portuguese markets and is fully invested.

“The formation of PIF with our partner and the establishment of a new banking relationship with Novo Banco mark significant strategic milestones for M7, as we continue to grow our business internationally,” said M7 Real Estate chief executive David Ebbrell.

“The initial portfolio we have assembled for PIF presents an attractive opportunity to add value through intensive asset management, which will be led by our local team on the ground in Lisbon,” he said.