M7 Real Estate has sold a 77,000 sq ft retail warehouse in Edinburgh to Urban Logistics REIT for £13.2m – a 6.2% yield.
The asset, in Milton Link, is occupied by The Range and a drive-thru Costa Coffee.
M7 acquired the asset in December 2020 as part of a wider portfolio purchase and quickly identified the asset for disposal at an enhanced value.
M7 divisional director Euan Burns said: “We are really pleased to have completed this sale which has generated a strong performance for the fund and will enable us to pursue other value enhancing opportunities. The sales process demonstrated a strong demand for well-located retail-led units which lend themselves to urban logistics. For this reason, we continue to view the asset type as one of the most interesting in the real estate sector due to its potential for repricing.”
M7 was advised by Stockford Anderson; Ryden acted for Urban Logistics REIT.
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