20 Jun 2011

LIPP Acquires Four Further Assets

20th June 2011 – LIPP (Light Industrial Property Partnership), the JV between Europa Capital Partners and M7 Real Estate has acquired four further assets, taking its total expenditure to over £60,000,000.

Three were acquired in the Union Portfolio from Helical bar for a total value of £9.45 million, representing an initial yield of 7.3% and a reversionary yield of approximately 11.6%. The portfolio consists of 63 units and 36 tenants and is currently 36.3% vacant. Approximately 70% of the vacant space is already under offer, which when completed will take the running yield to just over 10%.

The Estates are the Waterfront Business Park, Fleet, The Oakwood Business Park, Hailsham and Motherwell Park, Bellshill.

The fourth estate is on Mount Farm, Milton Keynes. The asset was acquired for an undisclosed sum from Threadneedle. It comprises 23 units providing approximately 105,000 sq ft, again with significant vacancy, much of which is now subject to letting discussions.

Matthew Cheyne, the partner at M7 responsible for LIPP said “We are delighted to have made these acquisitions. In the past where we have had substantial vacancy at acquisition, we have been able to reduce this very quickly which obviously has a meaningful impact on net income and value. We are confident of making a similar impression on these estates, as our activity since purchase is demonstrating”.

Franc Warwick acted for M7/LIPP in the acquisition of Union Portfolio and Brown & Lee and FSP acted for M7/LIPP in the acquisition of Mount Farm, Milton Keynes. Nationwide Building Society provided finance for both acquisitions.