The fund, M7 Real Estate Investment Partners VI, has acquired The Mash, 32,650 square feet of grade-A office accommodation in Hull for £4.5 million; and the Parkway Business Centre in Deeside, Wales, a 50,584-square foot space for a further £2.65 million.
The Mash, reflecting a net initial yield of 11 percent, is fully let to Wescot Credit Services Ltd, with a weighted average unexpired lease term of 4.7 years. It was converted for office use in 2010.
Parkway Business Centre, raising a net initial yield of 8.8 percent, is currently 89.5 percent let to a variety of tenants. The fund has already targeted a number of opportunities to drive value.
According to M7, the purchases are in line with the fund’s strategy targeting multi-let, higher-yielding secondary real estate on behalf of high-net worth investors.
John Murnaghan, head of UK real estate at M7, commented: “Having received initial investor commitments at the close of 2016 for this latest fund, we have already put them to work by investing in these regional high-yielding assets.”
“These investments are in line with the fund’s strategy to acquire assets that offer appealing income streams in the first instance, but also provide us with the opportunity to improve value further through selective asset management.”
He added: “With a targeted investment capacity of over £30 million, we have a number of assets in the pipeline and will be looking to announce further deals in the near term.”