M7 in record €175m first closing for Fund IV

In a single closing, the London-based real estate investment management firm has already raised €50m more for its fourth fund than the entire amount raised for its predecessor.

M7, the London-based real estate investment management firm, has held a first closing for its fourth private equity real estate fund, M7 European Real Estate Investment Partners IV, at €175 million.

It came just months after the firm held a final closing for its previous fund, for which it amassed €125 million over a number of closings.

The firm said it had raised the money from investors “from a number of jurisdictions, including Hong Kong and the Middle East.”

Including debt, M7 said the first closing meant it possessed a war chest of more than €400 million, from which it intends to acquire multi-let commercial real estate in Germany, the Netherlands, France, and Scandinavia.

Investments will be made via a value-add risk and return strategy and via its European platform, which comprises offices in 12 countries, the most recent of which opened in Luxembourg. The next will be in Finland in the fourth quarter of this year M7 said.

Richard Croft, chief executive, said the firm already had lined up more than €200 million of assets for the vehicle, with the first of these deals expected to be announced “in the near term.”

He added: “This latest fund marks an important milestone in the continued expansion of the M7 business. It is both our largest fund raise and underscores the appetite for income focused offerings underpinned by a risk diversified portfolio.

“Having extended our management platform across western, central, and northern Europe, our network of local offices gives us access to a significant number of investment opportunities across multiple sectors and geographies. This allows us to cherry pick those investments which are the most compelling and where we see a strong opportunity to add value through asset management.”

M7 was formed in 2009 and has more than 100 staff. It manages a portfolio of about 475 assets comprising 35 million square feet and a combined value of more than €2 billion.