Northern assets included in six-strong portfolio acquisition by M7 Real Estate

Graeme House in Liverpool

Property group M7 Real Estate has acquired six office and logistics assets in a deal worth £22.4m.

The purchase, on behalf of M7 Real Estate Investment Partners VI (M7 REIP VI), involve three office buildings situated in Liverpool, Stirling and Glasgow, totalling 1,043,055 sq ft, and three logistics sites in Barnsley, Workington and Inverclyde.

M7 said this is in line with M7 REIP VI’s strategy of investing in regional, high-yielding real estate assets, with strong fundamentals and asset management upside, which generate stable attractive income distributions for investors over the medium to long term.

The assets were purchased for an in-place net initial yield of 10.6% and have limited vacancy, but provide significant accessible reversion.

Will Hunting, senior acquisitions manager for M7, said: “Following the portfolio disposal in the Summer, which enabled us to deliver a further portion of original equity back to investors, we are efficiently reinvesting the remaining proceeds into a selection of assets with both income and capital growth potential.

“These purchases demonstrate M7’s continuing strategy of driving portfolio value via the aggregation of multiple small-cap assets, combined with pro-active asset management once acquired.”

In May last year M7 Real Estate, acting on behalf of M7 Real Estate Investment Partners III (M7 REIP III), acquired the Graeme House site in Liverpool city centre for £8.07m from Liverpool developer Downing, reflecting a net initial yield of 13.5%.

London-based M7 REIP III targets regional value-add commercial real estate opportunities in the UK.