Pan-European investor and asset manager M7 Real Estate has sold a light industrial logistics portfolio in the Netherlands to Canadian real estate investor, Dream Industrial REIT for around €140 million.
The logistics portfolio sale is behalf of M7 European Real Estate Investment Partners IV. M7 will be retained as advisor for the logistics portfolio.
The logistics portfolio comprises 31 high-quality light industrial and logistics properties that were acquired by M7 between October 2016 and June 2018 through 12 separate transactions. It provides significant scale in a highly fragmented market. The total logistics portfolio spans around 192,000 square meters and is 96% let to more than 70 tenants, providing a diversified tenant mix.
The assets are primarily concentrated in the country’s major urban centers including Amsterdam and Rotterdam, with over 87% of the properties located within 30 km of their respective city centres. Their strategic location means the assets serve as key last mile distribution hubs and capture growing demand for space in these markets from e-commerce businesses.
M7 manages assets with a total value of around €760 million in the Netherlands comprising a total of some 904,000 square meters across offices and light industrial space.
Simon Cowley, Divisional Director, Investment Management at M7, says, “This disposal demonstrates M7’s ability to identify and assemble a portfolio of assets with strong potential and to stabilize them through our asset management expertise, creating an institutional grade investment product while also delivering attractive returns for our investors.
“To be retained as advisor for the portfolio by the purchaser is a great endorsement of the team. It will also provide a seamless transition and continuous relationship with a best-in-class management team that has hands-on experience and deep knowledge of each property.”
David Ebbrell, Chief Executive of M7, adds, “The Netherlands remains a strategically important market for M7 where our team on the ground manage a sizeable portfolio on behalf of our investors. The sale of these assets on behalf of EREIP IV ahead of the anticipated time frame and at the prices achieved demonstrates M7’s ability to deliver returns for our investors through active asset management and a value add approach has enabled the estimated five year hold period for the assets to be halved whilst still achieving their projected returns.”
Berlin office building bought for fund
Commodus, a private equity investor focusing on office properties, has acquired an office building at Borsigturm technology campus in Berlin.
The purchase is for its Commodus Deutschland Fund II SCSp, RAIF as part of an asset deal from Gewerbepark am Borsigturm GmbH, a real estate company of the steel and technology group SALZGITTER AG.
The property is at 40, 42, 48 and 50 Am Borsigturm in Berlin’s Tegel district. The former start-up center with a wide variety of tenants offers more than 7,000 square meters of lettable office space and is currently fully let. It was built in 1997.
The transaction was brokered by BNP Paribas Real Estate. Commodus was advised by Jenckel Law, Hellriegel Rechtsanwälte, BRAND BERGER Real Estate Consulting and PKF.
Up-and-coming micro location
Dr Matthias Mittermeier, Founder and Managing Director of Commodus, says, “The office property that we have acquired is situated in an up-and-coming micro location close to innovative tech companies and major corporations, as well as a shopping center.
“What’s more, Tegel Airport – which is slated to undergo redevelopment into a science park for urban technologies and an innovative city neighborhood in the years ahead – is located just 2 kilometers away.”
The structural and architectural flexibility of the property makes it possible to accommodate a variety of innovative office concepts.
Commodus plans to begin modernizing and reletting larger units in late 2021. The space on offer is expected to range from open lofts to traditional, subdivided office units.
It intends to remodel the interior of the property while also improving the appearance of the exterior spaces and creating attractive common areas.
The location of the property in Berlin’s Tegel district offers an attractive alternative to more central office locations in the city thanks to its good connections to public transport (Borsigwerke U-Bahn and Tegel S-Bahn rapid transit stations) and major roads (A111 motorway).
With the Berlin TXL project already in the works at the current site of Tegel Airport, a new city neighborhood, a science park for urban technologies and a landscape garden is planned just 2 kilometers away.
€17 million student housing project underway
Xior Student Housing NV, the Belgian real estate investment trust has acquired a development project at a top location in Hasselt.
The project aims to include at least 157 units. The final number will be determined on completion of the revised permit that is currently underway.
This new-build student tower block with at least 10 floors is in Hasselt, on the campus of the PXL University of Applied Sciences and Arts. The residence includes a mix of separate and shared rooms, plus common areas.
The completion and commissioning are planned for mid-November 2020. The project is expected to have a total investment value of approximately EUR 17 million and an expected initial return of approximately 6.0%.
Xior Student Housing specialises in projects in Belgium, the Netherlands, Spain and Portugal.
In Belgium too, Xior continues to roll out its growth strategy. The first steps are being taken in Limburg
province, thus adding a seventh city to the Belgian portfolio.
Xior is currently home to about 22,000 students (including 2,000 international students) and has a high existing demand for high-quality student housing. The city is also well known for its lively social scene, and is called the ‘Capital of Taste’.
This new-build student tower block with a minimum of 10 floors is in a prime location on the campus, within walking or cycling distance of the city centre, the University of Hasselt and only 2km from the train station.
The development of this new student residence forms part of a broader master plan within which the PXL
Special Purpose Vehicle
This Special Purpose Vehicle (SPV) was awarded the project under a tender procedure, which includes the demolition of the existing constructions as well as the construction of the student residence on the relevant piece of land.
The new building will meet the strict EPB standards, including a compact heating/cooling system that supplies sustainable energy for the building’s heating and air conditioning.
Its sustainable CD20 modular prefab system was also used for the construction of the Woudestein residence in Rotterdam. This system offers a very quick and clean construction, avoids waste of materials and can also be fully dismantled and re-used. In addition, the speed of construction makes it possible to still become fully operational for the next academic year.
Vibrant student city
Christian Teunissen, CEO of Xior, says “Being born and
raised in Hasselt, I am personally proud of this first and very promising
investment in Hasselt, a truly vibrant student city with approximately 22,000
students. We are looking forward to offering quality and modern student
accommodation on the new campus of the PXL University of Applied Sciences and
to help strengthen the community feeling on this campus.
“In addition to adding a new top Belgian city to our fast-growing portfolio, we are also adding a brand-new sustainable residence to our portfolio that we want to keep making greener in line with our ESG strategy.”
Ben Lambrechts, General Director of PXL University of Applied Sciences, adds, “We are delighted that a strong player like Xior is coming to Hasselt. Hasselt is one of the major student cities in Leuven, Ghent, Delft, Lisbon and Porto where Xior already offers quality and reliable student rooms. The tower will be located on a prime location in the middle of our campus, close to all social facilities, close to the new Hasselt green lung and with the new and old city centre within walking distance… In short, a top location for a second home for our students to study, live and enjoy life in ideal conditions.”