M7 has completed its purchase of the Omega portfolio with a £77m loan from Barclays.
The portfolio, purchased from Goldman Sachs, consists of 26 UK industrial, office and retail assets.
The loan, at 60% of the £128m purchase price, is secured by rental income of £11.2m pa.
Omega has a vacancy rate of 19% and M7 will asset manage the properties in order to sign tenants.
Current tenants include the UK government, B&Q and Lloyds Bank. The weighted average lease term is 4.33 years.
Richard Croft, M7’s chief executive, said: “The Omega portfolio deal follows our recent investment in the UK’s regions through our REIP III and REIP IV mandates.
“The portfolio’s assets offer us opportunities to increase capital and rental values through our asset management expertise.”
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