M7 Real Estate concluded the sale of an office building in Porto on behalf of the M7 Portuguese Active Fund, or M7 PORAF, to a Portuguese real estate investment fund managed by Square Asset Management, through a transaction of 6,7 million euros, in an off market business.
The asset has a total of 3,826 sqm spread over 6 floors and 58 parking spaces in the basement. It was first purchased in October 2018, the first investment concluded on behalf of M7 PORAF - a discretionary management fund fully invested in a portfolio of offices, retail parks and industrial assets in Portugal (164,596 sqm) - and has since been the target of an M7 comprehensive management plan, including repairs and maintenance work, modernization of entrances, common areas or various vacant spaces.
The building meanwhile gained new tenants, and guaranteed the expansion of two existing lease agreements, with a 35% rent increase. Major tenants include an IT company or a leading ecommerce platform.
Eduardo Craveiro Lopes, Senior Asset Manager at M7, comments in a statement that «this sale is in line with the Fund's business plan and allows us to generate significant returns for investors. Furthermore, it demonstrates our ability to successfully execute our asset management strategy, despite the challenging market environment ».
He adds that «it is an excellent result and further illustrates the strong appetite of investors in the Portuguese real estate market. M7 remains focused on implementing other asset management initiatives as we continue to add value to the Fund».