26 Nov 2012

LIPP: M7 Announces Additional Activity

26th November 2012 – The Light Industrial Property Partnership (‘LIPP’), a joint venture between Europa Fund III and M7 Real Estate, has continued its acquisition programme with the purchase of a further 6 estates for an aggregate price of circa £12.6 million.

The purchase includes a portfolio of four estates – South Gyle, Edinburgh; Halifax Industrial Estate, Halifax; Cromwell Trading Estate, Stockport and Ashmount Business Park, Swansea together with individual estate purchases at Bilton Industrial Estate, Kings Norton, Birmingham and Bracknell Business Centre, Bracknell.

The total current income is £1.329 million pa with a full reversion to £1.583 million pa, providing an initial yield of 10% and a reversionary yield of 11.9%. The 6 estates combine to provide 354,000 sq ft in 74 units. The current vacancy level is 21% by floor area.

The purchases follow on from LIPP’s recent £800,000 sale of the Llandudno Junction Industrial Estate in North Wales, acquired within their purchase of the Heritage Portfolio during the summer. As a result of this activity, LIPP now comprises a total of 31 assets and a portfolio of over 2,620,000 sq ft in almost 500 units.

Matthew Cheyne, Partner at M7 Real Estate commented: “We are delighted to have secured these latest acquisitions, and look forward to assimilating the new properties within the asset management strategy for the existing portfolio.”

Rob Sim, Partner and Head of Northern Europe at Europa Capital added: “The LIPP joint venture has delivered some pleasing returns over the last three years, and we anticipate these new purchases will make a meaningful contribution to the future performance of this investment.”