M7 Real Estate Ltd. acquired four UK regional office properties on behalf of M7 Real Estate Investment Partners III. Two of the properties, offering a total of 85,991 sq ft of office space, are located in Knowsley, while the other two are located in Leeds and Nottingham. The properties, which are 69.25 percent leased, were acquired from four separate vendors and cost a total of GBP 7.25m. Together, they generate GBP 972,580 in rental income per year, equating to a net initial yield of 12.65 percent. Tenants include BCL Legal, NHS Property Services and Tesco.
“We are currently at advanced stages of crystallising the substantial asset management potential offered by each of these assets, which sit within strong and proven locations. The full range of our skillset will be put to work to unlock the latent value in these assets, including development works, lease restructures and incentives,” said John Murnaghan, head of UK asset management at M7 Real Estate. “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.”
