M7 has bought four single-let industrial properties for its M7 REIP III vehicle for £7.1m
The assets total 241,864 sq ft and were bought from Roebuck Asset Management CBRE Global Investors and Mutley Properties at an overall net initial yield of 9.3%.
M7 REIP III focuses on smaller UK regional assets.
The four properties are located near Middlesbrough, Milton Keynes, Washington and Kirkintiloc and have an average unexpired lease term of 10.7 years.
In a separate transaction, M7 has also invested £3.3m across a mix of retail, leisure and office assets on behalf of MOVVI, another separate account. The properties, which total 39,503 sq ft, are in Coventry, Birmingham and Manchester and are fully let to 18 tenants.
John Murnaghan, head of UK asset management for M7, said: “Our strategic focus will be on leveraging the income potential through the deployment of asset management initiatives, including lease extensions and value-adding capital investment.
“Together, these transactions reflect our continuing confidence in the capital and rental growth prospects for the UK regional market, supported by the ongoing economic recovery and increasing capital investment outside the South East.”
M7 was advised by Lambert Smith Hampton, Connect Property North East and Kleine & Co.
