M7 has fully invested the M7 Real Estate Investment Partners VI fund with the purchase of a £23.7m regional portfolio.
The fund, which has a total portfolio of £30.8m, was launched in December 2016 to target multilet, high-yielding assets in UK regions in response to what M7 said was a growing need for flexible and high-quality space for SMEs outside of London.
The biggest asset in the latest portfolio purchase was Felaw Maltings, a 108,879 sq ft office in Ipswich, acquired for £8.8m from Kames Capital at a net initial yield of 8.7%.
Richard Croft, chief executive of M7, said: “As the number of SMEs continues to increase, we are seeing constant demand for good-quality multilet space across the industrial, urban logistics and office sectors throughout the regions.
“We remain a cautious investor in the UK, albeit we remain committed to the market, particularly where we believe there is limited correlation between a local occupier and Brexit.”
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