20 Apr 2016
M7 Real estate acquires 26-asset Omega portfolio
London, 20 April 2016 – M7 Real Estate Ltd, the pan-European investor and asset manager, announces that it has completed the acquisition of a portfolio of industrial, office and retail assets across the UK from Goldman Sachs on behalf of M7 Real Estate Investment Partners V Ltd (“M7 REIP V”). The senior debt representing an LTV of 60% was provided by Barclays Bank.
The portfolio, known as the Omega portfolio, comprises 26 assets totalling approximately 1.6 million sq ft. The portfolio is 81% let to 149 tenants, including Government bodies, B&Q, Lloyds Bank and Thorntons Law, with a WAULT of 4.33 years.
The portfolio was acquired with a rental income of £11.2 million p.a. and a 19% vacancy rate, and, acting as co-investor, investment adviser and asset manager, M7 will seek to add value through a variety of asset management initiatives including letting vacant units, re-gearing of existing leases, undertaking rent reviews, removal of break clauses and the development of additional units where possible.
Richard Croft, M7’s Chief Executive said: “The Omega portfolio is a significant acquisition for M7 as it represents our continued confidence in the UK market, following our recent investment in the regions through our REIP III and REIP IV mandates. Producing a good level of quality income, they offer us opportunities to increase capital and rental values through our asset management expertise.”