Europa Capital has backed M7 to create a joint venture to acquire multi-let industrial assets in the UK. The joint venture, The Light Industrial Property Partnership (LIPP), will have the capacity to acquire over £130 million (approx. 144 mln.) of assets.
LIPP made its debut purchases this week when it acquired three industrial estates in Milton Keynes, Tewkesbury and Didcot for approximately £15 million at a net initial yield over 10%. It has a further £30 million of industrial assets under offer that are expected to transact within the next few weeks.
M7 Real Estate LLP has been appointed as the asset manager for LIPP.
Noel Manns, Principal of Europa, said "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. Without very hands on active management, this asset type will not perform in the short term. We believe that M7's very focused asset management capabilities will deliver out-performance."
Richard Croft, CEO of M7 added "We're delighted to have had the opportunity of partnering with Europa to create LIPP and launch M7's first acquisition program in the UK"