23 Mar 2013

Europa Capital and M7 form second JV

23rd March 2013 – Europa Capital (acting on the behalf of Europa Fund IV) and M7 Real Estate LLP are pleased to announce the formation of their second joint venture. The partnership has acquired 18 multi-let light industrial estates from a number of vendors including: The Industrial Trust, The Pritchard Group, Helical Bar and Hermes.

The assets include estates in Newton Aycliffe, Hull, Telford, Cannock and East Kilbride. The portfolio consists of 258 units across the 18 estates and provides over 1,640,000 sq. feet of predominantly industrial accommodation. The portfolio is currently let to over 150 tenants. This portfolio was acquired for approximately £37 million, reflecting a net initial yield of circa 12% and a reversionary yield of over 14%.

Europa Capital and M7 had previously created LIPP (The Light Industrial Property Partnership), which, between 2010 and 2012, acquired 32 estates, with a total investment of over £95 million.

James Fortescue at Europa Capital said, “We are delighted to have created this portfolio with M7. We believe that this sector should continue to deliver attractive income returns and we look to improve the capital values through active asset management and capital expenditure.”

Richard Croft, M7 Real Estate’s Senior Partner noted, “The portfolio that has been assembled generates a strong cashflow, with a highly diversified tenant base, and provides a number of early asset management opportunities.”