Are they the original e34 M5 M-Parallels, or the e39 copies? Although by the offset I'd say they're e39.
If the latter, then the centre bore is larger, so you'll need a hub-centric adapter to stop them wobbling.
I assume the 1/2"-1" negative offset reduction will push the wheel out by that amount, and the rear will be very close to (if not touching) the arch. Is there any reason for the non-M tyre sizes, or is it just down to price? If so, you can run 225/40r18 on all 4 (that's what the BMW winter wheel option does).