M7 Real Estate, on behalf of M7 ISLAY, has sold a portfolio of 27 retail properties in Germany, to the FIM Unternehmensgruppe (FIM Group) for €86.4 million ($102.53 million).
The portfolio, which includes a mix of high-quality, food-anchored tenants, comprises a total rental area of 72,594 square meters (781,395 square feet). The assets are 92 percent let to a range of occupiers including Lidl, Netto, Edeka, Rewe, Dänisches Bettenlager and SIEMES Schuhcenter GmbH & Co. KG. The largest single asset, which is on Hildesheimer-Strasse in Hannover, comprises 10,710 square meters (115,281 square feet) of space.
Having acquired the properties in separate transactions over 2015 to 2016 on behalf of the fund, M7 implemented an active management strategy involving capex projects, securing new leases and restructuring existing leases As a result, M7 has increased the occupancy of the portfolio from 80 percent to 92 percent and extended the unexpired lease term to six year
