M7 Real Estate has bought three UK retail warehouses for £18.4m, in three separate deals.
The properties, acquired on behalf of M7 Real Estate Investment Partners V, are located in Swansea, Hull and Birmingham. They measure a combined 138,515 sq ft.
These are let to tenants including B&M, Wickes, Iceland and Poundland with a combined WALT of 8.7 years and an ERV of £1.6m per annum.
The deals form part of M7’s strategy to acquire retail warehousing with low rents and capital values in “strategic” locations, with scope to add value through active asset management.
M7 REIP V’s portfolio now comprises 33 assets with a total value in excess of £150m across 1.96m sq ft, with a WALT of 4.65 years.
Will Hunting, divisional director, UK acquisitions, said: “These acquisitions utilise the proceeds from the recent disposal of Becketts House and are in line with our strategy of opportunistically divesting of assets and recycling capital into opportunities that are accretive to the fund’s income profile.
“These assets also continue our theme of acquiring credit diversified, medium to long-term income streams which offer multiple value-add initiatives.
“We continue to target the UK retail warehouse sector, where we are seeing interesting opportunities for assets at the right pricing level.”
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
