M7 REIP III acquires four UK regional office properties

London,13 May, 2016 – M7 Real Estate Ltd, the pan-European investor and asset manager, announces that, on behalf of M7 Real Estate Investment Partners III (“M7 REIP III” or the “Fund”), it has completed the purchase of four office assets for a total value of £7.25 million. M7 REIP III is a separate account which is focused on smaller UK regional commercial real estate assets.

Two of the four assets, which together comprise 85,991 sq ft of modern office accommodation, are located in Knowsley, on the edge of Liverpool, and the remainder are in Leeds and Nottingham. They were acquired from four separate vendors and currently produce a combined passing rent of £972,580 per annum, equating to a Net Initial Yield of 12.65%. The portfolio is 69.25% occupied by 10 tenants, including BCL Legal, NHS Property Services and Tesco, with a WALT of three years.

John Murnaghan, Head of UK Asset Management at M7 Real Estate said, “We are currently at advanced stages of crystallising the substantial asset management potential offered by each of these assets, which sit within strong and proven locations. The full range of our skillset will be put to work to unlock the latent value in these assets, including development works, lease restructures and incentives.

These transactions reflect the ongoing confidence we have in the UK regional market’s capital and rental growth prospects, against the backdrop of the ongoing economic recovery and increasing capital investment outside the South East.”

M7 REIP III now has a total portfolio size of c.327,855 sq ft, of which 27.49% by value is offices. The Fund has a Value Add-led strategy and targets assets that offer both sustainable income streams and asset management opportunities in the retail, office and the multi-let industrial sectors in the UK.