M7 closes retail warehouse fund with acquisition of five assets for £24.8m

M7 Real Estate, the pan-European investor and asset manager, has announces that, on behalf of M7 Real Estate Investment Partners VIII, it has acquired a total of five retail warehouse assets for £24.8 million ($30 million) reflecting an in-place net initial yield of 8 percent.

The acquired assets total 191,136 square feet and are located across the United Kingdom in Leeds, Gateshead, Worksop, Stafford and Shipley. The assets are fully leased with a combined weighted average lease term of 6.3 years with 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 20 assets totaling 1.04 million square feet for approximately £126 million ($164 million) since the fund launch in third quarter 2018. The acquisitions are in line with the fund’s strategy of investing in first- and second-generation retail warehouse assets in the United Kingdom with low rent per square foot and low capital values.