M7 expands retail warehouse portfolio
M7 Real Estate has acquired a total of five retail warehouse assets from four vendors for £23.9m reflecting a net initial yield of 8%.
These acquisitions, on behalf of M7 Real Estate Investment Partners VIII are in line with the Fund’s strategy of investing in first- and second-generation retail warehouse assets in the UK. Since the fund was launched in Q3 2018 the fund value has grown to £100m across 15 assets.
The acquired assets which comprise two multi-let retail parks and three solus units, total 218,435 sq ft and are located across the UK in Chester, Wrexham, Stockton, Scunthorpe and Falkirk. Tenants include Wickes, Halfords, Go Outdoors, Matalan and Euro Car Parts. The assets are fully let with a combined WALT of seven years.
Will Hunting, senior acquisitions manager at M7, said: “Following the first tranche of acquisitions last year, these assets follow the fund’s theme of investing in low rent per square foot, low capital value retail warehousing, providing a defensive and diversified income return while also offering multiple value-add opportunities. We have identified a strong pipeline going forward and look forward to announcing further acquisitions shortly.”