M7 Real Estate has acquired 15 industrial, retail warehouse and office assets in the UK, via 11 separate transactions, on behalf of a joint venture targeting value-add UK real estate with a fund managed by global investment and technology development firm the D. E. Shaw group.
The acquisitions, which have been supported by senior debt financing from Barclays, comprise nine single and multi-let industrial assets across the UK, including Coventry, Oldbury and Glasgow; four retail warehousing schemes in Solihull, Leicester, South Shields and Lowestoft; and two BREEAM ‘Excellent’ multi-let office properties in Glasgow.
The JV’s portfolio, which is 98% occupied, comprises a total of 761,200 square feet with a weighted average lease term of five years.
M7 will act as asset manager for the JV’s portfolio, and will undertake a number of initiatives to enhance the portfolio, including negotiation of outstanding and upcoming lease events, as well as let up of vacancy.
David Ebbrell, Chief Executive of M7 Real Estate, commented: “Over the last few months we have worked closely with the D. E. Shaw group to assemble an attractive portfolio of high quality regional assets with opportunity for value enhancement. Our focus is now on undertaking our property level asset management plans, leveraging our extensive experience in this area and, if the right opportunities arise, further expanding the portfolio.”
Jason Constable, Head of Real Estate at Barclays Corporate Banking, added: “We have a strong and longstanding relationship with both M7 and the D. E. Shaw group and to support them in this financing package, which will accelerate the growth aspirations of the joint venture, was a natural fit for us. We continue to closely collaborate with our valued clients as they deliver on their strategies and this facility further underlines our ongoing commitment to the UK Real Estate Sector.”