M7 Real Estate, the pan European investor and asset manager, has acquired a three unit industrial estate in Durham for £2.2m, on behalf of M7 REIP V.
Located on Belmont Industrial Estate, 1-3 North Point comprises 49,314 sq ft of multi-let industrial space. The purchase price reflects a Net Initial Yield of 8.5%.
Cushman & Wakefield represented M7 Real Estate whilst Knight Frank represented the vendor.
Belmont Industrial Estate is a well-established estate located to the east of Durham city centre and adjacent to the A1. The units are fully occupied to Amey Utility Services Ltd and Durham Roofing Centre which generate a passing rent of £198,500 per annum.
Katy Paxton, Surveyor in Cushman & Wakefield’s Investment team in Newcastle commented: “We are very pleased to secure this well-located estate with significant asset management potential in what is a very competitive market place.”
Will Hunting, Acquisitions Manager at M7 Real Estate, said: “This acquisition is in line with the funds’ strategy of purchasing well located assets with strong fundamentals that are immediately accretive to the portfolio. M7 continues to see value in the regional multi-let real estate market and are pleased to have completed another purchase in the North East with Cushman & Wakefield.”
