M7 swoops on 10 UK industrial assets for Middle Eastern fund

Pan-European asset manager M7 has acquired 10 industrial and office assets located across the UK for £29.9 mln (€33 mln), on behalf of a new separate account mandate for a Middle Eastern sovereign wealth investor.

The investments reflect an initial yield of 9.0% and a capital value of £50 per ft2.

The assets were acquired through six transactions and total some 591,000 ft2 (55,000 m2), according to the firm. They comprise single and multi-let industrial assets in Tunbridge Wells, Letchworth Garden City, Swindon, Warminster, Barnsley, Seaham and Galashiels, as well as two office assets in Nottingham and East Kilbride.

'Completing the assembly of the UK element of the portfolio marks an important milestone as we focus our attention on deploying the remaining capital,' said Will Hunting, divisional director – UK acquisitions at M7.

'It also demonstrates our ability to source multiple small cap assets, which meet the criteria for this strategy and present an opportunity to generate value through active asset management,' Hunting added.

The portfolio is 95% let to 59 tenants with a combined weighted average lease term of 4.8 years, with what M7 calls 'significant accessible income reversion'.

The investment mandate targets regional, high yielding commercial real estate assets in the UK and continental Europe which generate stable, diversified income streams over the medium term, as well as capital growth potential.

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