M7 Real Estate, the pan-European investor and asset manager, has completed the acquisition of a portfolio of industrial, office and retail assets across the UK from Goldman Sachs.
The investment volume for the transaction which was first signalled back in December 2015 was not disclosed. But it is thought to have been in the region of £120 mln (€152 mln).
M7 carried out the acquisition for its on behalf of M7 Real Estate Investment Partners V (M7 REIP V). The senior debt representing an LTV of 60% was provided by Barclays Bank.
The portfolio, known as the Omega portfolio, comprises 26 assets totalling approximately 150,000 m2. The portfolio is 81% let to 149 tenants, including Government bodies, B&Q, Lloyds Bank and Thorntons Law, with a weighted average lease term of 4.33 years.
The portfolio was acquired with a rental income of £11.2 mln per annum and a 19% vacancy rate. Acting as co-investor, investment adviser and asset manager, M7 will seek to add value through a variety of asset management initiatives including letting vacant units, re-gearing of existing leases, undertaking rent reviews, removal of break clauses and the development of additional units where possible.
Richard Croft, CEO of M7 said, 'The Omega portfolio is a significant acquisition for M7 as it represents our continued confidence in the UK market, following our recent investment in the regions through our REIP III and REIP IV mandates. Producing a good level of quality income, they offer us opportunities to increase capital and rental values through our asset management expertise.'
