M7 acquires Eddie Stobart-let distribution centre
M7 Real Estate has acquired five adjacent warehouse units let on a long-term lease to Eddie Stobart in Workington, Cumbria, for £6.3m from Stobart Group.
The purchase, on behalf of its M7 Real Estate Investment Partners VI fund, represents a net initial yield of 10% and a capital value per sq ft of £13.22.
Located on the 45-acre Lillyhall Industrial Estate, the units provide 476,000 sq ft of space combined.
M7 Real Estate has acquired five adjacent warehouse units let on a long-term lease to Eddie Stobart in Workington, Cumbria, for £6.3m from Stobart Group.
The purchase, on behalf of its M7 Real Estate Investment Partners VI fund, represents a net initial yield of 10% and a capital value per sq ft of £13.22.
Located on the 45-acre Lillyhall Industrial Estate, the units provide 476,000 sq ft of space combined.
Four of the units are occupied by Eddie Stobart on a 10-year lease without break, which is subject to RPI-linked rent reviews at years two and seven, at £1.31 per sq ft, generating a total rental income of £675,000 per year.
The site also includes adjacent underutilised land with potential for future development.
Will Mitchell, asset manager at M7, said: “The fundamentals of this asset, including the fact that it is located on an established long-let industrial estate and offers an attractive day one yield with scope to add value, make it a perfect fit with the M7 REIP VI strategy.
“The continual reduction in the supply of large industrial space, coupled with an increase in demand for accommodation such as this, is supporting positive rental growth and we anticipate this to be realised going forward.”
M7 Real Estate was unrepresented. Roebuck Asset Management acted for Stobart Group.
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