M7 acquires £23.7 million of regional assets and takes sixth UK-focussed fund to full investment

25 July 2017

London, 25 July 2017 - M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that it has completed the acquisition of seven regional assets with an aggregate value of £23.7 million on behalf of M7 Real Estate Investment Partners VI (“M7 REIP VI” or the “Fund”). The Fund is now fully invested with a total portfolio value of £30.8 million. M7 REIP VI was launched in December 2016 to target multi-let, high yielding assets with attractive income profiles in key UK regional locations, underpinned by supportive fundamentals including the growing need of SMEs for flexible and high quality space outside of London.

The seven assets have been acquired in separate transactions, the largest of which is Felaw Maltings, a 108,879 sq ft office asset in Ipswich, from Kames Capital for £8.8 million, reflecting a net initial yield of 8.7%. The substantial Victorian redbrick building, known locally as Ipswich’s best multi-let office property, was converted into office use in the 1990s, and is fully let to a range of tenants including the Suffolk Enterprise Centre, recruitment specialists VPSS and engineering, environmental and building control consultancy MLM Group.

In addition, M7 has acquired:

  • III Acre Princeton Drive, comprising three 90% occupied, modern Grade A office buildings totalling 32,913 sq ft, at the Teesdale Business Park in Stockon on Tees for £3 million, reflecting a NIY of 11.7%;
  • Rivermead Court, comprising two fully let, two-storey, multi-let office buildings on the Kenn Business Park in Clevedon for £3.16 million, reflecting a NIY of 11%;
  • Oldham Business Centre, a 45,367 sq ft office property in Oldham, Greater Manchester for £3.4 million;
  • Merchant Gate at 1 Burbage Square in Wakefield, a 26,295 sq ft mixed-use office and retail development for £2.1 million;
  • The Chilterns in Stokenchurch, Wycombe in Buckinghamshire, a fully let 10,478 sq ft modern office development for £1.85 million, reflecting a NIY of 8.1%; and 
  • Cromwell House in Lincoln, a 15,727 sq ft office property for £1.4 million.

Charlie Alcock, a Director at M7 commented: “The portfolio is currently yielding around 10% and, with average rental levels below historic averages, there are a number of potential opportunities to further enhance the income profile in the medium term.”

Richard Croft, Chief Executive at M7 commented: “As the number of SMEs continues to increase we are seeing constant demand for good quality multi-let space across the industrial, urban logistics and office sectors throughout the regions. Appropriate occupational space is integral to the success of SMEs and there is growth in the regions as businesses increasingly choose to base themselves outside of London, attracted by more affordable space in areas that can simultaneously present employees with better living standards. We remain a cautious investor in the UK albeit we remain committed to the market particularly where we believe there is limited correlation between a local occupier market and Brexit.”

M7 secures new lettings to fully let its Portuguese portfolio

9 January 2018

Portugal, 9 January 2018 - M7 Real Estate (“M7”), the pan-European real estate investor and asset manager, announces that it has agreed a number of new lettings across its circa 22,000 sq m Portuguese light industrial portfolio, bringing the total occupancy to 100% and increasing the average lease length by 45% to 2.62 years. The portfolio, which comprises two industrial parks in the Greater Lisbon area, was acquired by M7 in a joint venture in January 2016. M7 acts as asset manager for the assets through its Lisbon based team, which is headed by Leonardo Peres. read more

M7 makes first Danish investment for M7 EREIP IV with €69.8 million of acquisitions

4 January 2018

London, 4 January 2018 - M7 Real Estate, the pan-European investor and asset manager, announces that it has undertaken its first investment in Denmark on behalf of M7 European Real Estate Investment Partners IV (“M7 EREIP IV” or the “Fund”), acquiring 10 logistics assets for a total of €69.8 million. read more

M7 Real Estate Investment Holdings acquires the M7 Multi-Let Seed Portfolio for circa £117 million

18 December 2017

London, 18 December 2017 - M7 Real Estate (“M7”), the pan European investor and asset manager, announces that it 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 £117 million. 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. read more