M7 Real Estate has bought an 87,000 sq ft Liverpool office building from Downing for £8.1m – a net initial yield of 13.5%.
The office building, which is 92% let to 22 tenants, was acquired on behalf of M7 Real Estate Investment Partners III, which targets regional value-add commercial real estate opportunities in the UK.
The property generates circa £1.2m of passing rent pa with a weighted average lease term of 1.9 years and presents an opportunity for active asset management.
Located on Derby Square in Liverpool city centre, the property is close to Grosvenor Europe’s Liverpool ONE retail complex and a short walking distance from James Street railway station.
Will Hunting, senior acquisitions manager for M7 Real Estate, said: “We have identified an opportunity to reposition the asset to accommodate a market that has seen a surge in demand for high-quality, flexible and small suite office space.”
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