17 Feb 2021

Kamco Invest Group and M7 aggregate c. £62.5m portfolio of high quality regional UK offices

Kamco Invest Group and M7 Real Estate (“M7”), the pan-European investor and asset manager, have completed the acquisition of three office buildings in three separate transactions across primary regional UK cities. The transactions are supported by Aviva Investors, who have provided a newly originated senior debt facility towards the purchase of the office assets.

The transactions are structured and distributed as a single transaction. The portfolio comprises three high specification office properties in three major submarkets (Maidenhead, Cardiff and Bristol). The properties, which extend over a total of c. 214,000 sq ft, are fully occupied by a number of investment-grade tenants including SAP, Atradius and TSB, with an average unexpired lease term of 6.5 years. The investments will target a high single digit annual cash dividend.

Commenting on the acquisitions, Mohammad Al Othman, Executive Director of Real Estate at Kamco Invest, said: “We continue to advise and assist our regional group entities on real estate transactions and diversify the Group‘s portfolio by investing in high-quality, well-located office spaces throughout the UK. Each of the properties within this package of deals include existing investment-grade tenants, providing a secure, long-term income stream for our investors.

“Kamco Invest Group will continue to build out its investment strategy by seeking to acquire income-generating, premium office space, using a specialist UK-based team of collaborators including M7 Real Estate.”

David Ebbrell, Chief Executive of M7 Real Estate, commented: “We are excited to be partnering with Kamco Invest Group on the acquisition of a further three office assets via three separate transactions, which follows on from the acquisitions we secured in the summer of last year.  These properties are all located in markets that are experiencing a shortage of Grade A office supply and are well placed to benefit from strong local market fundamentals, including robust regional office demand which we expect to continue in a post COVID-19 environment. We are delighted to have been able to work with the Kamco Invest team on the acquisition of these assets, which we will be managing going forwards, and look forward to working together on future projects.”

Hugh Fraser, Chief Executive of M7 Capital, added: “It is great to have closed a second senior debt facility between Kamco Invest Group and Aviva Investors. Our team continues to enjoy a close working relationship with Aviva Investors, which has enabled us to efficiently close this financing at competitive terms during these challenging market conditions.”

Gregor Bamert, Head of Real Estate Debt, Aviva Investors, commented, “We’re pleased to be further building on our relationship with Kamco and M7. A first for Aviva Investors Real Estate Debt, this transaction was structured to be partly fixed and partly floating with the latter portion aligned to SONIA to ensure the optimal outcome for both the borrower and investors of the loan. This transaction further demonstrates our commitment to strong sponsors and the belief that good opportunities continue to exist in the market.”