17 Dec 2014
M7 Raises Its First Real Estate Investment Fund, Acquiring 11 High Yielding Properties in the UK
17th December 2014 – M7 Real Estate, the pan-European investor and asset manager specialised in multi-let properties, has raised its first fund for third party investors and has acquired 11 high-yielding assets in England on its behalf for £25.7 million, or a blended net initial yield of about 12.5%.
The light industrial, office and retail properties acquired from various vendors by the new fund, M7 Real Estate Investment Partners II (REIP II), are located in the Midlands, the northwest and northeast of England and comprise a total of more than 460,000 sq ft of space.
Richard Croft, M7 Real Estate’s Chief Executive Officer, said: “This is a test run of our ambitions to establish M7 as a third-party investment manager. Up to now we have invested our own capital and worked in joint venture partnerships, so this is a natural progression for the company as a fully-fledged operating partner in our specialist high-yielding, multi-let property sector. We will be looking to return to the market next year to raise capital for a much larger discretionary fund.”
REIP II raised 16.1 million pounds in equity from high net worth individuals, exceeding its initial target by more than 60%. With the inclusion of debt finance REIP II is targeting investments totalling approximately £35 million.