18 Aug 2010

Light Industrial Property Partnership Acquires Eighth Estate

18th August 2010 – M7 has acquired an eighth estate for the Light Industrial Property Partnership, its joint venture with Europa Fund III.

The Avonbank Industrial Estate consists of 26 units providing c. 55,000 sq feet of space and was acquired for £3,070,000 providing an initial yield of c.9% and a reversionary yield of 12%. The estate is currently 25% vacant.

David Ebbrell, the M7 partner who led the transaction commented that “The Avonbank Estate provides substantial asset management opportunities. Despite the high level of vacancy, there is a shortage of small units in the 1,500 – 3,000 sq ft range in Avonmouth. We are of the opinion that our flexible lease structures, coupled with our planned refurbishment will provide an upside opportunity for the Light Industrial Property Partnership”.

James Allen, the M7 partner who heads the asset management of LIPP added “We have remained highly selective in our purchasing over the last six months as we have felt that much of the stock that has been available has been inappropriately priced. Avonbank, however, was an opportunity that fitted LIPP’s criteria perfectly.