M7 Real Estate has bought, on behalf of M7 Real Estate Investment Partners VI (M7 REIP VI), a warehouse asset in the north west of England.
The pan-European investor and asset manager said it acquired five adjacent warehouse units in Workington, Cumbria from Stobart Group for £6.3m (€7.2m).
The units, four of which are interlinked, are situated on the established 45-acre Lillyhall Industrial Estate and comprise a total of 476,000sqft. Four of the units are occupied by Eddie Stobart on a ten-year lease without break.
In addition to warehouse space, the buildings provide some additional external office space, a series of level loading doors across all the units and significant parking provision, M7 said. The site also includes adjacent underutilised land with potential for future development.
Will Mitchell, an asset manager at M7, said: “The fundamentals of this asset, including the fact that it is located on an established long let industrial estate and offers an attractive day one yield with scope to add value, make it a perfect fit with the M7 REIP VI strategy.”
M7 REIP VI invests in mixed-use assets across England and Scotland. This transaction follows the acquisition of three new mixed-use assets for the fund in August.
“The continual reduction in the supply of large industrial space, coupled with an increase in demand for accommodation such as this, is supporting positive rental growth and we anticipate this to be realised going forward. It was a pleasure dealing with Roebuck Asset Management on this transaction which has no doubt added to our successful working history,” Mitchell said.
Roebuck Asset Management acted for Stobart Group.
Charlie Seaton, a director at Roebuck Asset Management, said: “Having completed a range of initiatives at the property, it was an optimal time to sell. We were delighted to work with the M7 team again on another successful transaction.”