The acquisition of the DUO portfolio, comprising a total of 22,500 sq m GLA, is in line with the Fund’s strategy of targeting value-add and core plus logistics, industrial and office investments in the key Central European markets of Poland, Hungary and Croatia.

The first property is a c. 13,000 sq m Grade A warehouse located in Siemianowice, 8km north of Katowice. The asset was constructed to a high standard in 2018 and is fully let to two tenants.

The second property is located in Sosnowiec, 5km north east of Katowice, and comprises c. 9,500 sq m of modern warehouse space, built in 2015. The asset is 93% let to 11 tenants, providing a diverse income profile and short to medium term active asset management opportunities to improve the value.

This is the third acquisition on behalf of the Fund, which is now 50% invested following a first close in 2020. The target size of the Fund is circa €100 million, with leverage, and a significant pipeline of potential investments has been identified across the region.

Katarzyna Parkot, Managing Director, Poland at M7, commented: “In light of the increased demand for urban logistics assets, which has accelerated due to the growth of e-commerce during the pandemic, we are very pleased to have completed this acquisition of two high-quality assets with excellent connectivity to major road networks. The DUO portfolio, in the Upper Silesia region which is home to the largest cluster of industrial assets in Poland, will strengthen the M7 CEREF II portfolio.

“Additionally, we are confident that we will improve the rental income over time through an ongoing asset management programme as we expect demand to remain strong for logistics assets providing access to Poland’s major motorways.”