London-based property fund managers Europa Capital and M7 are joining forces to acquire multi-let industrial assets in the UK. The new joint venture, The Light Industrial Property Partnership (LIPP), will have the capacity to acquire over £130 mln (EUR 142 mln) of assets.
London-based property fund managers Europa Capital and M7 are joining forces to acquire multi-let industrial assets in the UK. The new joint venture, The Light Industrial Property Partnership (LIPP), will have the capacity to acquire over £130 mln (EUR 142 mln) of assets.
LIPP made its debut purchases this week when it acquired three industrial estates in Milton Keynes, Tewkesbury and Didcot for roughly £15 mln at a net initial yield of over 10%. It has a further £30 mln of industrial assets under offer that are expected to transact within the next few weeks, the companies said in a joint statement on Friday.
M7 Real Estate LLP has been appointed as the asset manager for LIPP.
'We believe in the long term fundamentals of multi-let industrial estates in the UK although we are being selective in our purchases, as we believe the occupier market will remain weak for at least the next 24 months,' said Noel Manns of Europa. LIPP is M7's first acquisition programme in the UK.
Europa Capital, a London-based real estate fund management group, raised two new investment funds for European property investment in 2008, Europa Fund III and Europa Emerging Europe. Together, these funds give Europa Capital EUR 895 mln of additional equity to invest.
