M7 sells UK retail warehouse portfolio to British Land for in excess of £45 million

M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that it has sold a portfolio of three UK retail warehouse assets on behalf of M7 Box+ II (the “Fund”) to British Land for over £45 million.

St David’s Retail Park, Bangor, Queens Drive Retail Park, Kilmarnock and Enham Arch Retail Park, Andover, comprise a total of over 270,000 sq ft of retail warehouse space with strong occupancy and a blended WALT of over 5 years.

M7 acquired the assets in 2020 on behalf of M7 Box+ II, a fund focused on UK retail warehouses with potential for future rental and capital growth. Since acquisition M7 has successfully re-geared a number of leases with key tenants and leased vacancy improving the income profile and WALT.

M7 is an experienced manager of retail warehouse space across the UK, with a current portfolio under management totalling over 2m sq ft. Following the sale, four assets, which are well placed to benefit from further asset management initiatives, remain in M7 Box+ II’s portfolio.

John Pow, Managing Director at M7 Real Estate, commented: “This transaction marks the conclusion of our asset management strategy for these assets and generates a solid return for our investors. The sale allows the Fund to return equity back to investors whilst we continue to work through the asset management strategy for the remaining four assets. The retail warehousing sector continues to perform well and remains highly attractive to investors and occupiers. The sector plays an integral role in the ecosystem for retailers, including increasingly for last mile delivery and click and collect. We are now focused on recycling capital into high growth assets within our preferred sectors of logistics and retail warehouses.”

M7 was advised by Savills.