M7 Real Estate has sold an office building in Porto, Portugal to a Portuguese real estate investment fund.
Situated in Porto, Portugal´s second largest city, the six-storey property, which comprises a total floor area of 3,826 sq m and 58 underground car parking spaces, is located in a prime commercial and residential part of the city.
The office building in Porto is let to a diverse mix of occupiers, including the anchor tenant, a business operating in the IT sector which runs a leading e-commerce platform.
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Having acquired the asset in October 2018, the first investment to be completed on behalf of M7 Portuguese Active Fund, M7 has improve the quality and appeal of the building, and implemented a comprehensive asset management plan including repairs and maintenance work, as well as upgrading the building’s lobbies, common areas and vacant space.
”Following these initiatives, M7 attracted a number of new tenants and were able to extend two existing lease agreements, which increased the income at the asset by 35%,” said M7 in a statement.
“This sale is in line with the Fund’s business plan and enables us to generate significant returns for investors. Additionally, it demonstrates our ability to successfully execute our asset management strategy, in spite of the challenging market environment. It is an excellent result for the Fund and further illustrates the strong investor appetite we are seeing in the Portuguese real estate market. M7 remains focused on executing other asset management initiatives as we continue to add value to the vehicle,” said Eduardo Craveiro Lopes, Senior Asset Manager at M7.