10 Feb 2017
M7 makes first acquisitions for latest UK Fund
London, 10 February 2017 – M7 Real Estate (“M7”), the pan-European investor and asset manager which specialises in the regional, multi-let real estate market, announces that it has made its first acquisition on behalf of its latest UK fund, M7 Real Estate Investment Partners VI (“M7 REIP VI” or the “Fund”), with the purchase of £7 million of assets in Hull and Deeside. These acquisitions are in line with the Fund’s strategy of targeting multi-let, higher yielding secondary real estate in key locations throughout the UK on behalf of HNW investors, and follows its first close in December 2016.
M7 has acquired The Mash in Hull for £4.5 million, reflecting a net initial yield of 11%. The Mash comprises 32,650 sq ft of Grade A office accommodation across a series of Grade II listed buildings, and is fully let to a single tenant, Wescot Credit Services Ltd, with a WAULT of 4.7 years. The Mash forms a part of the Maltings, the former site of a Victorian brewery, which was converted to office use in 2010 and now provides a fully refurbished flexible working environment that appeals to a variety of tenants.
In addition, M7 has also acquired Parkway Business Centre in Deeside, Wales, for £2.625 million at a net initial yield of 8.8%. Comprising 10 industrial units and six office units across a total of 50,584 sq ft, the estate is currently 89.5% let to a range of tenants. M7 has identified a number of opportunities to drive value at this asset, including a targeted refurbishment programme and the leasing of void space to further strengthen and diversify the tenant mix and income stream. It is envisaged that there will be significant rental growth in this location.
John Murnaghan, Head of UK Real Estate at M7 commented: “Having received initial investor commitments at the close of 2016 for this latest fund, we have already put them to work by investing in these regional high-yielding assets. These investments are in line with the Fund’s strategy to acquire assets that offer appealing income streams in the first instance, but also provide us with the opportunity to improve value further through selective asset management. With a targeted investment capacity of over £30 million, we have a number of assets in the pipeline and will be looking to announce further deals in the near term.”