M7 sells logistics portfolio in Hungary in biggest transaction of its kind this year

M7 Real Estate has sold a portfolio of five logistics parks across Hungary on behalf of its Central European Real Estate Fund I (CEREF I) in the largest logistics transaction in the region this year. A sales price was not disclosed.

The fund closed in April 2017 with €60 million ($65 million) in capital commitments, reaching its fundraising target.

The 84,000-square-meter (904,168-square-foot) portfolio, which includes three assets in Budapest, one in Eger and another in Pécs, was assembled by M7 in three separate transactions from different sellers during 2016 and 2017.

M7 increased the average occupancy of the portfolio by 28,500 square meters (306,771 square feet) or from 63 percent to 94 percent through a €4.6 million ($5 million) capex program, along with new marketing. The weighted average unexpired lease term (WALT) of the portfolio has almost doubled to three years.

In a separate transaction, M7 also sold the Atom Centre, a 2,614-square-meter