M7 has completed the sale of Quinta do Alcaide, a 6,000 sq m retail park located south of Lisbon in Evora, the Alentejo region, to Europar, a Brazilian family office. Following implementation of a comprehensive asset management strategy, including the approval for the construction of an additional 2,000 sq m of space to accommodate the expansion of one of the park’s existing occupiers, and the letting of a vacant unit, M7 increased the occupancy of the asset to 100%, whilst also growing the income and WAULT from 1.7 years to 7.97 years. Quinta do Alcaide’s occupiers include AKI, a DIY distribution company, Homa, the home goods store, and sofa retailer, Feira do Sofás.
M7 has also disposed of a c. 2,800 sq m gym and office asset in the Oeiras area of Lisbon to Fundiestamo, a Portuguese investment fund. The property is let to one of Portugal’s leading gym groups, accommodating both a gym and the company’s headquarters. M7 engaged proactively with the occupier during the period of Covid restrictions, agreeing a 12-month rental discount in exchange for the removal of break clauses over the next eight years of its 20-year lease, improving the longer-term income profile of the asset.
M7 has also divested of a 251 sq m, fully let office unit in Lisbon’s Arcis building to Fundiestamo on behalf of the Fund.
In addition to the three sales, a significant re-gear has also been agreed with a car parts and accessories distribution company for c. 4,400 sq m of last mile logistics space in Lisbon, which increased the in-place rent by circa 40% enabling the Fund to capture significant reversion.
