M7 buys five retail warehouses for £24.8m

M7 Real Estate has closed its retail warehouse fund, M7 Real Estate Investment Partners VIII, after buying five assets for a combined £24.8m. The deal reflects a net initial yield of 8%. The assets total 191,136 sq ft and are located in Leeds, Gateshead, Worksop, Stafford and Shipley. They are fully let, with a combined WALT of 6.3 years, to tenants including Poundstretcher, Topps Tiles, DSG Retail, Pets at Home, B&Q and Argos. The purchases complete the acquisition period for the fund, which has acquired circa £126m across 20 assets totalling 1,039,255 sq ft since it launched in Q3 2018. The fund focused on first- and second-generation retail warehouses in the UK with low rent per sq ft and low capital values. Will Hunting, senior acquisitions manager at M7, said: “The five new assets are accretive to the fund, continuing the theme of acquiring credit diversified medium to long-term income streams that also benefit from multiple value-add opportunities.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette