11 May 2017
M7 Real Estate secures blue chip covenant to become fully let in Gainsborough
London, 11th May 2017 – M7 Real Estate, the pan-European investor and asset manager, announces that, acting on behalf of a major institution, it has secured the letting of 4,481 sq ft at Corringham Road Industrial Estate (the “Estate”) in Gainsborough, Lincolnshire to Alliance Healthcare (Boots) to become fully let across the 16-unit, 65,000 sq ft asset.
The letting completes an active period for the Estate which has included the freehold sale of a 48,000 sq ft warehouse and a significant refurbishment of Unit 46, enabling M7 to agree a long term lease to DIY-giant Screwfix. Screwfix joined nearby occupiers Travis Perkins, Jewson, Howdens and Eminox- located on surrounding estates- to provide a notable improvement in the tenant profile in the area. Several lease renewals completed towards the end of 2016 which have further strengthened both the Estate’s rental profile and investment value.
The Estate was acquired in November 2013 with a vacancy rate of over 50% and a short WAULT of circa 1.4 years. Facing a challenging local market, M7 has used a flexible approach to leasing in order to reduce vacancy rates, enhance the Estate’s investment value and passing rent and extend the WAULT to almost 2.7 years. This has helped to contribute to good fund returns over recent years.
Will Mitchell, Asset Manager at M7 Real Estate commented: “An innovative active management programme has helped us to achieve full occupancy and secure two key covenants on the Estate. Despite the geopolitical and occupational pressures we have found demand is not weakening in the area and, with several tenants recently renewing their leases, we expect Corringham Road to perform strongly for the foreseeable future.”