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M7 Real Estate (“M7”), the pan-European investor and asset manager, has acquired a modern, multi-tenanted office property in Budapest, Hungary on behalf of M7 CEREF II (the “Fund”), for €12.35 million. The acquisition is in line with the Fund’s strategy which targets value-add and core plus office and logistics / industrial properties in key Central European markets, including Croatia, Hungary and Poland.
M7 has also agreed a €56.7 million loan facility on a five year term for the Fund with Erste Group, one of the largest financial services providers in Central and Eastern Europe, establishing a new banking relationship in the region.
The newly acquired property is located on the Róbert Károly Boulevard near the Váci corridor, an office sub-market that is immediately to the north of Budapest’s CBD and adjacent to the capital’s inner ring road, with multiple transport links within a five minute walk. It comprises 7,066 sqm lettable area across eight floors, with 89 underground parking spaces and various amenities including cycle storage, a café and a restaurant. The asset is 91% let to nine tenants, providing a diverse income profile and short to medium term opportunities to improve asset value significantly.
This is the second acquisition undertaken on behalf of the Fund which is now 30% invested following the purchase in July of a 12,672 sqm multi-tenanted modern office building in the city of Katowice, Poland. There is a secure pipeline of potential acquisitions, with further completions expected in Q1 2021 moving the Fund towards its €100 million capital deployment target.
Source : Company