13 February 2017
Hull
Reporter: Theo Andrew
£7 million acquisition for M7 UK fund
M7 Real Estate has made the first acquisition on behalf of its latest UK fund, purchasing £7 million of assets in Hull and Deeside.

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.”

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Segro raises £573 million in share placing
28 March 2017 | London | Reporter: Theo Andrew
Segro has successfully placed 166 million shares, raising gross proceeds of £573 million to finance its purchase of the Airport Property Partnership
Rockspring sells part of Spanish portfolio
28 March 2017 | Madrid | Reporter: Theo Andrew
Rockspring has sold part of a Spanish retail portfolio to Group Lar for €110.7 million, on behalf of a separate account mandate
LaSalle sells Nike store in Glasgow
27 March 2017 | Glasgow | Reporter: Theo Andrew
Redevco has acquired a high street retail asset in the Nike flagship store on Buchanan Street in Glasgow, for £29 million in an off-market deal
L&G invests in Bath buy-to-rent scheme
27 March 2017 | Bath | Reporter: Theo Andrew
Legal & General has acquired a city centre development in Bath for £47.5 million, and plans to develop 171 build-to-rent homes
Deutsche Bank plans new HQ in London
27 March 2017 | London | Reporter: Mark Dugdale
Deutsche Bank has signalled its commitment to staying in the UK post-Brexit by entering into negotiations over a new headquarters in London
Gothenburg office scored for SEK 1.26bn
27 March 2017 | Gothenburg | Reporter: Theo Andrew
Atrium Ljungberg has acquired an office building in Gothenburg, Sweden, for SEK 1.26 billion
New York property acquired for $19.3 million
24 March 2017 | New York | Reporter: Katherine Brown
Avanath Capital Management has acquired a residential asset at Grand Pointe Park in Poughkeepsie, New York, for $19.3 million