M7 Real Estate has acquired four industrial and office assets in four separate transactions for a total of €18.5m (£16.5m) on behalf of the latest fund in its regional UK value add series, M7 Real Estate Investment Partners IX.
These latest acquisitions total 240,000ft² and comprise a c. 73,000ft² distribution warehouse in Bradford let to Transmec Group, the transport and logistics company; Christchurch House, a c. 27,000ft² office building in West Bromwich town centre, let to the Secretary of State; Trinity Park, a c.101,000ft² mixed-use industrial and office scheme in Wakefield with tenants including Wakefield Council and 2 Sisters Food Group; and Unit 6 on Roundwood Industrial Estate in Ossett, close to Wakefield, a c.39,000ft² distribution warehouse let to British American Shipping Ltd.
The Fund portfolio now totals 452,000ft² split across the three sectors: 33% in well-located regional offices, 43% in industrial and logistics and 24% in strategically located long-let retail warehousing. At the completion of these deals, the Fund is 96% let and provides a day one yield in excess of 8% from a range of tenants with strong credit ratings and an average unexpired lease term in excess of 7 years.
David Ebbrell, Chief Executive of M7 Real Estate, commented: “These recent acquisitions which have all been completed during the pandemic are attractive additions to M7 REIP IX’s portfolio, providing a mix of secure income underpinned by strong covenants in locations where we expect occupier demand to remain robust. With our considerable in-house expertise, we have already identified a number of asset management initiatives across the portfolio including refurbishment and leasing activity in order to drive returns for our investors.”
