M7 Real Estate (“M7”), the pan-European investor and asset manager specialising in multi-tenanted properties, announces that it has sold three assets in Lisbon and Évora, via three separate transactions on behalf of the M7 Portuguese Active Fund (“M7 PORAF” or the “Fund”) for a total of €12.2 million.
M7 has completed the sale of Quinta do Alcaide, a 6,000 sq m retail park located south of Lisbon in Evora, the Alentejo region, to Europar, a Brazilian family office. Following implementation of a comprehensive asset management strategy, including the approval for the construction of an additional 2,000 sq m of space to accommodate the expansion of one of the park’s existing occupiers, and the letting of a vacant unit, M7 increased the occupancy of the asset to 100%, whilst also growing the income and WAULT from 1.7 years to 7.97 years. Quinta do Alcaide’s occupiers include AKI, a DIY distribution company, Homa, the home goods store, and sofa retailer, Feira do Sofás.
M7 has also disposed of a c. 2,800 sq m gym and office asset in the Oeiras area of Lisbon to Fundiestamo, a Portuguese investment fund. The property is let to one of Portugal’s leading gym groups, accommodating both a gym and the company’s headquarters. M7 engaged proactively with the occupier during the period of Covid restrictions, agreeing a 12-month rental discount in exchange for the removal of break clauses over the next eight years of its 20-year lease, improving the longer-term income profile of the asset.
M7 has also divested of a 251 sq m, fully let office unit in Lisbon’s Arcis building to Fundiestamo on behalf of the Fund.
In addition to the three sales, a significant re-gear has also been agreed with a car parts and accessories distribution company for c. 4,400 sq m of last mile logistics space in Lisbon, which increased the in-place rent by circa 40% enabling the Fund to capture significant reversion.
M7 PORAF was launched in 2018 to target value add investment opportunities in key regional Portuguese markets. The Fund, which is fully deployed, comprises a portfolio of office, logistics, light industrial and retail parks totalling 176,000 sq m concentrated in Great Lisbon and Greater Porto.
Source : Company