Kamco and M7 said they have invested £62.5m (€72m) to buy the assets across primary regional UK cities in separate transactions, in a deal supported by a newly originated Aviva Investors senior debt facility.
The portfolio comprises three office properties in Maidenhead, Cardiff and Bristol. The properties, which extend over a total of 214,000sqft, are fully occupied.
Gregor Bamert, the head of real estate debt at Aviva Investors, said: “We’re pleased to be further building on our relationship with Kamco and M7. A first for Aviva Investors real estate debt, this transaction was structured to be partly fixed and partly floating with the latter portion aligned to SONIA to ensure the optimal outcome for both the borrower and investors of the loan.
“This transaction further demonstrates our commitment to strong sponsors and the belief that good opportunities continue to exist in the market.”
Mohammad Al Othman, executive director of real estate at Kamco Invest, said each of the properties within this package of deals includes existing investment-grade tenants, providing a secure, long-term income stream for investors.
“Kamco Invest Group will continue to build out its investment strategy by seeking to acquire income-generating, premium office space, using a specialist UK-based team of collaborators including M7 Real Estate.”
David Ebbrell, CEO of M7 Real Estate, said: “We are excited to be partnering with Kamco Invest Group on the acquisition of a further three office assets via three separate transactions, which follows on from the acquisitions we secured in the summer of last year.
“These properties are all located in markets that are experiencing a shortage of Grade A office supply and are well placed to benefit from strong local market fundamentals, including robust regional office demand which we expect to continue in a post-COVID-19 environment.”
Hugh Fraser, CEO of M7 Capital, said: “It is great to have closed a second senior debt facility between Kamco Invest Group and Aviva Investors. Our team continues to enjoy a close working relationship with Aviva Investors, which has enabled us to efficiently close this financing at competitive terms during these challenging market conditions.”
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