M7 Real Estate (“M7”) has acquired eight assets from a number of vendors for a combined purchase price of €29.7m (£26.1m) on behalf of M7 Real Estate Investment Holdings (“M7REIH”). M7REIH is a wholly owned subsidiary of M7 Real Estate Limited and this latest transaction grows its portfolio to 100 assets, following the launch of M7REIH with the acquisition of a seed portfolio of 92 assets for €133.2m (£117m) in December 2017.
These eight new assets comprise 912,372 ft² of space and consist of six multi-let industrial assets, a single-let distribution unit and a multi-let office park, located throughout the UK. They are 98% let to 25 tenants operating across a diverse range of sectors. The assets produce circa €2.6m (£2.3m) of passing rent per annum, representing an in place net initial yield of 8.3% and a reversionary yield of 13.5%. The combined WALT is approximately six years and tenants include Amazon, Bunzl, Howdens and Wolseley.
Will Hunting, Senior Acquisitions Manager for M7 UK Real Estate, said: “These transactions demonstrate our long-standing track record in identifying assets, both on and off market, where there is scope to create further value. These assets grow M7REIH’s high quality and diversified income stream and present an opportunity to drive performance through active asset management. As well as providing the fund with credit diversification, the assets all share similar characteristics – strong real estate fundamentals in locations where, through M7’s existing platform experience, we have identified excellent supply and demand dynamics and scope to drive rents and income forwards, whilst also buying significantly below replacement cost.”
