M7 Real Estate, the pan European investor and asset manager, has acquired 92 multi-let assets in the UK for a combined price of £117 mln (€13 mln) from seperate vendors.
The largely UK regional assets comprise the Marble Portfolio and M7 Real Estate Investment Partners II (M7 REIP II). The acquisitions were made on behalf of M7 Real Estate Investment Holdings, a wholly owned subsidiary of M7 Real Estate Limited.
'This is a highly diversified and high yielding portfolio which presents M7 and its investors in the new listed loan note with an exciting opportunity for value and income creation through further asset management,' commented Richard Croft, M7’s chief executive.
According to the firm, the assets primarily comprise the assets originally identified for acquisition by M7 Multi-let REIT on its planned IPO. M7 recently revealed the cancellation of plans to list the M7 Multi-let REIT which had hoped to raise £300 mln (€335 mln).
M7 has provided the equity with financing for the purchases secured through senior debt together with a loan note that will be listed in the Channel Islands on the International Stock Exchange. A number of existing and new third party investors have taken up the loan note component of the offer.
The portfolio of 3,331,600 ft2 (309,500 m2) is comprised predominantly of multi-let regional industrial assets, as well as a small amount of offices, mixed-use office and industrial assets and retail property.
It produces £11.2 mln (€12.7 mln) p.a. of contracted rent which is generated by a highly diversified range of over 600 tenants, split geographically across the UK.
