M7 acquires five UK sheds for €28m

Pan-European investor and asset manager M7 Real Estate has acquired a total of five retail warehouse assets from four vendors for £23.9 mln (€28 mln), reflecting an in-place net initial yield of 8%.

The deals - struck on behalf of M7 Real Estate Investment Partners VIII (M7 REIP VIII) - comprise two multi-let retail parks and three single units.

'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 whilst also offering multiple value-add opportunities,' said Will Hunting, senior acquisitions manager at M7.

The assets total 218,435 ft2 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 weighted average term lease of seven years.

The purchases take the fund value to circa £100 mln across 15 assets since fund launch in Q3 2018.

'We have identified a strong pipeline going forwards and look forward to announcing further acquisitions shortly,' Hunting concluded.


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