Pan-European investor and asset manager M7 Real Estate has acquired five retail warehouse assets for £24.8 mln (€29 mln) across the UK Midlands and North on behalf of M7 Real Estate Investment Partners VIII (M7 REIP VIII).
According to M7, the deal volume reflects an in-place net initial yield of 8%.
The assets total 191,136 ft2 (18,000 m2) and are located across the UK in Leeds, Gateshead, Worksop, Stafford and Shipley. The assets are fully let with a combined weighted average lease term of 6.3 years, with tenants including Poundstretcher, Topps Tiles, DSG Retail, Pets at Home, B&Q and Argos.
Will Hunting, senior acquisitions manager at M7 said: 'We are delighted to have completed the acquisition period for M7 REIP VIII and look forward to building on the strong results already achieved by the asset management team across the portfolio.
'The five new assets are accretive to the fund, continuing the theme of acquiring credit diversified medium to long term income streams that also benefit from multiple value-add opportunities.'
With regards to plans for a follow-up fund, Hunting said: 'We are very pleased with the portfolio we have curated over a very efficient timeframe for M7 REIP VIII and are currently considering our options in terms of next steps.'
During the acquisitions period, the fund has closed on £126 mln of assets, comprising 20 properties covering 1,039,255 sq ft since the Fund launch in Q3 2018. The acquisitions are in line with the Fund’s strategy of investing in first and second generation retail warehouse assets in the UK with low rent per square foot and low capital values.
