On behalf of M7 Real Estate Investment Partners III, the pan-European investor and asset manager M7 Real Estate Ltd has completed the purchase of four office assets for a total value of €9.2 million (£7.25 million). (M7 REIP III is a separate account, which is focused on smaller UK regional commercial real estate assets.)
Two of the four assets, which together comprise 85,991 sq ft of modern office accommodation, are located in Knowsley, on the edge of Liverpool, while the remainder are in Leeds and Nottingham. They were acquired from four separate vendors and currently produce a combined passing rent of €1.2 million (£972,580) per annum, equating to a net initial yield of 12.65%. The portfolio is 69.25% occupied by 10 tenants, including BCL Legal, NHS Property Services and Tesco, with a WALT of three years.
John Murnaghan, head of UK asset management at M7 Real Estate, said, “These transactions reflect the ongoing confidence we have in the UK regional market’s capital and rental growth prospects, against the backdrop of the ongoing economic recovery and increasing capital investment outside the South East.”