M7 Real Estate, acting on behalf of M7 Real Estate Investment Partners VIII (M7 REIP VIII), has acquired a total of five retail warehouse assets from four vendors for €27.5m (£23.9m) reflecting an in place net initial yield of 8%. These acquisitions, which comprise two multi-let retail parks and three solus units, are in line with the fund’s strategy of investing in first and second generation retail warehouse assets in the UK. The assets total 218,435ft² and are located across the UK in Chester, Wrexham, Stockton, Scunthorpe and Falkirk. Tenants include Wickes, Halfords, Go Outdoors, Matalan and Euro Car Parts. The assets are fully let with a combined WALT of seven years. The purchases take the fund value to circa €115.2m(£100m) across 15 assets since fund launch in Q3 2018.
Will Hunting, Senior Acquisitions Manager at M7, commented: “Following the first tranche of acquisitions last year, these assets follow the fund’s theme of investing in low rent per square foot, low capital value retail warehousing, providing a defensive and diversified income return whilst also offering multiple value-add opportunities. We have identified a strong pipeline going forward and look forward to announcing further acquisitions shortly.”