The Light Industrial Property Partnership (‘LIPP’), a joint venture between Europa Fund III and M7 Real Estate, has exchanged contracts to acquire the Heritage Portfolio from the LPA receivers.
The 12 Estate portfolio has been acquired for £18,700,000 and contains industrial estates in Bordon (Hampshire), Northampton, Tipton, Leighton Buzzard, Andover and six estates in Wales as well as a single asset in Scotland.
The portfolio has a current income of £2.3m pa with a full reversion of £2.8m pa, providing an initial yield of 11.7% and a reversionary yield of 14.1%. The 12 estates combine to provide 742,000 sq ft in 181 units. The current vacancy level within Heritage is 21.2% by floor area.
Following this purchase, LIPP comprises a total of 26 assets and a portfolio of over 2.17m sq ft in 415 units.
Noel Manns, Principal at Europa Capital, said “This acquisition complements our existing holdings in LIPP and in our opinion provides an opportunity to undertake a number of asset management initiatives to stabilize and grow the current income within the Heritage Portfolio.”
Richard Croft of M7 Real Estate added “The Heritage portfolio is typical of M7’s target real estate and we believe offers LIPP an opportunity to enhance value through focused refurbishments and asset management.”
