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 Real Estate lets 800 sq m of café/restaurant space and extends leases on over 1,800 sq m in Hanover

17 August 2017

Frankfurt, August 17 2017 − M7 Real Estate (M7), the pan-European investor and asset manager specialising in the regional, multi-let real estate market, has let around 800 sq m of café/restaurant accommodation in Hildesheimer Strasse 420-426, Hanover. The "Xiahui Hu China-Restaurant" has signed a long-term lease on the unit. Engel & Völkers Commercial brokered the deal. read more

M7 Real Estate lets 10,500 sq m of logistics and warehouse space

2 August 2017

Frankfurt, 2 August 2017 – M7 Real Estate (M7), the pan-European investor and asset manager specialising in the regional, multi-let real estate market, has advised its joint venture with Starwood Capital, MStar Europe, on the long-term letting of around 10,500 sq m of warehouse and logistics space with three new lettings. The express beverage delivery company "Flaschenpost" has taken almost 8,500 sq m of warehouse space in Köhlstrasse 8 in Cologne. The property, dating from 1972 and extended in 1989, has a total lettable area of circa 38,100 sq m and is now fully let. Greif & Contzen brokered this transaction. read more

M7 achieves new record rent in South Lancashire

1 August 2017

London, 1 August 2017 - M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that, acting on behalf of a major financial institution, it has secured the letting of over 63,000 sq ft of warehouse accommodation to Pallet-Track at the South Lancashire Industrial Estate in Ashton, Makerfield. Pallet-Track, the UK’s fastest growing overnight-palletised freight network has agreed a 10 year lease at £330,000 pa, equating to £5.17 psf, setting a new headline rent for refurbished secondary space in the area, reflecting both strong demand and limited supply in the region. read more