M7 Real Estate secures new 3,700 sq m let g at Paris warehouse building
M7 Real Estate (M7), a pan-European investor and asset manager, has agreed a new c3,700 sq m letting to Homeworks, a specialist tile manufacturer, at its warehouse building in Combs-La-Ville, South East of Paris, on behalf of the M7 French Active Fund (M7 FAF).
Homeworks has agreed to let a 2,945 sq m warehouse unit and 723 sq m of office space on a 3/6/9 year lease, increasing the occupancy of the c. 7,300 sq m asset, which includes c. 1,800 of office space, to 75% and extending the WALB to 3.9 years. This follows the letting of a c. 1,800 sq m unit to EHS Group, which specialises in the production of road safety traffic cones, on a 6/9 year lease, in January 2020.
M7 acquired the property in April 2018 at which time the asset comprised a single-let warehouse unit with vacant ancillary office space. On taking vacant possession of the warehouse in November 2019, M7 undertook a refurbishment of the offices and repositioned the warehouse space for multi-tenanted use. A single c1,800 sq m warehouse unit with 630 sq m of office space remains available for occupation.
Situated in the South Parisian suburb of Combs-La-Ville, the asset is located in an area that is popular with industrial businesses. Nearby links to major highways, including the N104, N6, N7, A5 and A6, provide access to Paris city centre as well as the rest of France.
Chris Pope, Managing Director - France at M7 Real Estate, says: “As Europe emerges from lockdown, it is encouraging to see increased movement in the broader occupational market, although demand for warehouse and logistics space has held up relatively well throughout. Since establishing our first dedicated French fund in 2018, we have been applying our value-add asset management expertise to the portfolio we have assembled, improving occupancy and income in line with our asset level business plans.”
The M7 French Active Fund is fully invested in high yielding real estate assets occupied by small and medium sized enterprises in Greater Paris, Toulouse and other core French regions. The Fund’s portfolio comprises a total of 170,000 sq m of multi-tenanted office and industrial space across 31 assets and is 90% weighted towards the Greater Paris region by value.
M7 was advised on both lettings by CBRE.