M7 Real Estate sells office building in Porto, Portugal

M7 Real Estate has sold an office building in Porto, Portugal, on behalf of the M7 Portuguese Active Fund (M7 PORAF), to a Portuguese real estate investment fund.

Situated in Porto, Portugal’s second-largest city, the six-story property, which comprises a total floor area of 3,826 square meters (41,183 square feet) and 58 underground car parking spaces, is located in a prime commercial and residential part of the city.

Having acquired the asset in October 2018 — the first investment to be completed on behalf of the fund — M7 identified an opportunity to improve the quality and appeal of the building and, post-purchase, 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 was able to extend two existing lease agreements, which increased the income at the asset by 35 percent.