M7 enters Croatia and Hungary on behalf of fund

London-based M7 Real Estate has made two acquisitions in Croatia and Hungary for the recently launched CEREF I fund.

The acquisitions, totaling €14 million ($14.5 million), mark M7’s first investment in either country.

M7 has acquired a real estate portfolio in Budapest from Recovery Zrt, the asset management company for CIB Bank. The portfolio consists of two retail centers — with tenants including Kik Fashion, Deichmann and DM (Drogerie Markt) — as well as a 124,780 square-foot vacant standalone urban logistics asset.

In a separate transaction, M7 has acquired the Mani Business Centre, a 149,780-square-foot multi-tenant office park in Zagreb, Croatia. Mani Business Centre currently has a weighted average lease term of 1.23 years and is 84 percent occupied, with tenants including Croatia Airlines, Peugeot Croatia and Optima Telekom.

M7 CEREF I is M7’s first Central European fund for third-party investors and will