M7 Real Estate has sold a portfolio of three UK retail warehouse assets to British Land for over £45m (€52.4m).
The pan-European real estate fund manager said the 270,000sqft of space – comprising the St David’s Retail Park in Bangor, the Queens Drive Retail Park in Kilmarnock and the Enham Arch Retail Park in Andover – were sold on behalf of the M7 Box+ II fund.
The UK-focused retail warehouse fund acquired the assets in 2020.
M7 said it had renegotiated several leases with primary tenants and reduced vacancy since the acquisition, enhancing the property’s income and lease term.
Following the sale of the three assets, M7 Box+ II’s portfolio will comprise four assets which have been identified for ongoing asset management activities, the manager added.
John Pow, managing director at M7 Real Estate, said: “This transaction marks the conclusion of our asset management strategy for these assets and generates a solid return for our investors. The sale allows the fund to return equity back to investors whilst we continue to work through the asset management strategy for the remaining four assets.
“The retail warehousing sector continues to perform well and remains highly attractive to investors and occupiers. The sector plays an integral role in the ecosystem for retailers, including increasingly for last-mile delivery and click and collect.
“We are now focused on recycling capital into high-growth assets within our preferred sectors of logistics and retail warehouses.”
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