Pan-European investor and asset manager M7 Real Estate has acquired seven regional assets in the UK from a variety of vendors for a total of £23.7 mln (€26.5 mln).
The properties were purchased on behalf of M7 Real Estate Investment Partners VI (M7 REIP VI), bringing the fund to full investment with a total portfolio value of £30.8 mln (€34.4 mln).
'As the number of SMEs (small and medium-sized enterprises ed.) continues to increase, we are seeing constant demand for good quality multi-let space across the industrial, urban logistics and office sectors throughout the regions,' commented Richard Croft, chief executive at M7.
The seven assets have been acquired in separate transactions, the largest of which is Felaw Maltings (pictured), a 108,879 ft2 (10,100 m2) office asset in Ipswich, from Kames Capital for £8.8 mln, reflecting a net initial yield of 8.7%.
The other, largely office-focused properties are located in Stockton on Tees, Clevedon, Oldham, Wakefield, Wycombe and Lincoln.
'The portfolio is currently yielding around 10% and, with average rental levels below historic averages, there are a number of potential opportunities to further enhance the income profile in the medium term,' commented Charlie Alcock, a director at M7.
M7 REIP VI was launched in December 2016 to target multi-let, high-yielding assets in key UK regional locations.
'We remain a cautious investor in the UK albeit we remain committed to the market, particularly where we believe there is limited correlation between a local occupier market and Brexit,' concluded Croft.
