M7 Real Estate has acquired 92 primarily UK regional multi-let assets comprising the Marble Portfolio and M7 REIP II (from separate vendors) for a combined purchase price of circa €132.5m (£117m). The acquisitions have been made on behalf of M7 Real Estate Investment Holdings, a wholly owned subsidiary of M7 Real Estate Limited. M7 has provided the equity with financing for the purchases secured through senior debt together with a loan note that will be listed in the Channel Islands on the International Stock Exchange. A number of existing and new third-party investors have taken up the loan note component of the offer.
The portfolio of circa 3,331,600 ft² is comprised predominantly of multi-let regional industrial assets, as well as a few offices, mixed-use office and industrial assets and retail property.
The portfolio produces circa €12.68m (£11.2m) p.a. of contracted rent which is generated by a highly diversified range of over 600 tenants, split geographically across the United Kingdom.
Due to the granularity of the portfolio, the favourable supply and demand dynamics in the industrial sector together with M7’s proactive management track record there is significant opportunity to drive performance and generate significant rental growth from this portfolio.
These assets primarily comprise the assets originally identified for acquisition by M7 Multi-let REIT on its planned IPO.
Richard Croft, M7’s Chief Executive said: “This is a highly diversified and high yielding portfolio which presents M7 and its investors in the new listed loan note with an exciting opportunity for value and income creation through further asset management.”
