M7 Real Estate sells industrial property in Bavaria

M7 Real Estate sells industrial property in Bavaria

M7 Real Estate has sold a light industrial property in Ottobrunn, Bavaria, on behalf of M7 European Real Estate Investment Partners IV, to Accumulata Real Estate Group. The parties have agreed not to disclose the purchase price.

The industrial property in Ottobrunn, Bavaria, at Christa-McAuliffe-Strasse 1, has a lettable area of around 13,650 sq m and comprises a warehouse building with ancillary office space. The building, which was constructed in 1982, also provides 130 car parking spaces.

Occupied on long leases by two strong covenants, Flugzeug-Union Süd GmbH and Carl Stahl Süd GmbH, the asset’s weighted average unexpired lease term (WAULT) is seven years.

M7 acquired the property on behalf of the Fund in 2017 when it also assumed the role of asset manager. Following the acquisition, M7 implemented an active asset management strategy, increasing the occupancy of the building to 92%. Accumulata will be taking over as the long-term asset manager of the property.

“Purchased as part of a portfolio for M7 EREIP IV, we have demonstrated our asset management expertise by reducing the vacancy and improving the long term cash flow of the property. Having identified this opportunity and stabilised the income in accordance with our business plan, we decided to sell the asset generating attractive returns for our investors,” said Richard Fletcher, Head of Transactions at M7 Real Estate Germany.

“We are pleased to purchase the property in a location which is significantly improving. The combination of a stable cash flow and potential for a future increase in value is a perfect fit with our long-term investment strategy,” commented Tobias Döscher, Head of Transaction Management at Accumulata Real Estate Investment Management GmbH.