M7 Real Estate Ltd has announced that it has completed its acquisition of The Green, a 47 acre regeneration project in Solihull, for £38.27m (€52.16m) from M&G Real Estate. M7 has acquired the site on behalf of M7 Real Estate Investment Partners IV Ltd (‘M7 REIP IV’), a newly formed Jersey based investment company which it advises.
M7 REIP IV has raised £10.7m (€14.6m) from a mix of institutional, family office and high net worth investors, with £2.35m (€3.2m) of co-investment by M7. In addition the purchase was part funded through the issue of a £10.7m (€14.6m) five-year bond.
The Green’s asset management and development program will be led by Hugh Ellingham, M7’s chairman, together with planning director Ben Hooton and new development director Giles Walter.
Commenting on the acquisition, Hugh Ellingham said: “This is a significant acquisition for M7 as it represents our first major brownfield regeneration project and will allow us to fully utilise our team’s planning and development skills. While The Green already produces a healthy level of income from the existing buildings, it also offers further upside through the existing outline and detailed planning consents and our confidence in its potential is underlined by our co-investment in the project.”
Richard Croft, M7’s chief executive added: “This is a further exciting development for M7, with the team that will be led by Hugh expanding our capabilities in the UK and providing opportunity for growth across our UK platform.”
GVA acted for M&G Real Estate and DTZ acted for M7 Real Estate Investment Partners IV Ltd.
