M7 REIP III fund buys Graeme House in Liverpool
M7 Real Estate has acquired an office building in northwest England on behalf of its value-add commercial real estate fund.
M7 Real Estate Investment Partners III (M7 REIP III) bought Graeme House in Liverpool for £8.1m (€9.2m) from property group Downing.
The pan European investor and asset manager said the acquisition amount reflects a net initial yield of 13.5%.
Graeme House comprises 87,002sqft of office space and is 92% let.
Will Hunting, a senior acquisitions manager for M7 Real Estate, said: “The acquisition of Graeme House demonstrates M7’s long-standing track record in purchasing assets where there is scope to create further value through our multi-let strategy.
“We have identified an opportunity to build on the property’s existing strong offer and to reposition the asset to accommodate a market that has seen a surge in demand for high quality, flexible and small suite office space.”
M7 REIP III targets regional value-add commercial real estate opportunities in the UK.
John Clegg, head of property management at Downing, said: “With the building in great condition and almost fully let, we felt the time was right to see it pass into new hands and look forward to seeing Graeme House continue to thrive under new ownership.
“In Liverpool, Downing will focus on the continued transformation of its No.1 Old Hall Street development into a high-quality building that befits its location and prominence in the city.”