M7 Real Estate (M7) has acquired four industrial and office assets in four separate transactions for a total of £16.5 million on behalf of the latest fund, M7 Real Estate Investment Partners IX (M7 REIP IX).
Following a first close in February 2020, which raised a total of £23.9 million of equity from UK, European and Asian based family offices and local UK councils, the capital has now been deployed. M7 REIP IX is investing in regional UK office, retail warehousing and industrial assets.
These latest acquisitions total 240,000 sq ft and comprise a c. 73,000 sq ft distribution warehouse in Bradford let to Transmec Group, the transport and logistics company; Christchurch House, a c. 27,000 sq ft office building in West Bromwich town centre, let to the Secretary of State; Trinity Park, a c.101,000 sq ft mixed use industrial and office scheme in Wakefield with tenants including Wakefield Council and 2 Sisters Food Group; and Unit 6 on Roundwood Industrial Estate in Ossett, close to Wakefield, a c.39,000 sq ft distribution warehouse let to British American Shipping Ltd.
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The fund portfolio now totals 452,000 sq ft split across the three sectors: 33% in well located regional offices, 43% in industrial and logistics and 24% in strategically located long-let retail warehousing. At completion of these deals the fund is 96% let and provides a day one yield in excess of 8% from a range of tenants with strong credit ratings and an average unexpired lease term in excess of 7 years.
“These recent acquisitions which have all been completed during the pandemic are attractive additions to M7 REIP IX’s portfolio, providing a mix of secure income underpinned by strong covenants in locations where we expect occupier demand to remain robust. With our considerable in-house expertise, we have already identified a number of asset management initiatives across the portfolio including refurbishment and leasing activity in order to drive returns for our investors,” said David Ebbrell, Chief Executive of M7 Real Estate.
