M7 Real Estate, acting on behalf of M7 Real Estate Investment Partners VIII, has acquired a total of five retail warehouses for €29m (£24.8m) reflecting an in-place net initial yield of 8%. The assets total 191,136ft² and are located across the UK in Leeds, Gateshead, Worksop, Stafford and Shipley. The properties are fully let with a combined WALT of 6.3 years with tenants including Poundstretcher, Topps Tiles, DSG Retail, Pets at Home, B&Q and Argos.
The purchases complete the acquisition period for the Fund which has acquired circa €147.6m (£126m) across 20 assets totalling 1,039,255ft² 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.
Will Hunting, Senior Acquisitions Manager at M7, commented: “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.”
