M7 Real Estate , the pan European investor and asset manager, announces the acquisition of Tweedbank Industrial Estate, the largest industrial estate in the Scottish Borders, on behalf of a new separate account mandate for a Middle Eastern sovereign wealth investor. The asset was acquired from funds managed by Catalyst Capital for £4.57 million, reflecting an initial yield of 8.62% and a capital value of £39 per sq ft.
Tweedbank Industrial Estate comprises circa 115,000 sq.ft. (10,680 sq m) of industrial space and is 93% let to a range of occupiers with a WAULT of 4.52 years. The purchase is in line with the mandate’s objective of generating an attractive income return with opportunities to add value by leveraging the continuing strength of the industrial occupier market in the UK.
The asset is located close to Galashiels town centre and adjacent to the A6091, as well as being in close proximity to the new Tweedbank Railway Station, part of the new Borders Railway. The surrounding area is subject to wider development proposals including a new Premier Inn and business space, which are expected to enhance the estate’s position as the commercial centre of the local economy.
Euan Burns, Divisional Director at M7 commented: “This acquisition of a dominant asset in this location provides sustainable income but also offers future potential to add value through asset management. It also underpins M7’s commitment to the Scottish market after a very active 2018. We have identified a pipeline of transactions aligned to the strategy of this mandate, which we continue to progress.”
Guy Wilson, a partner of Catalyst Capital, said: “We are pleased to have restored Tweedbank Industrial Estate to near full occupancy following physical improvements to the buildings and the estate and the completion of our leasing programme. This is one of a number of sales we have recently realised for Catalyst European Property Fund 2 in line with the business plan.”
M7 Real Estate was advised by JLL and Catalyst Capital was advised by Savills.
M7 Real Estate Ltd is a pan-European investor and asset manager specialised in multi-let real estate. M7’s team consists of over 250 staff operating across a platform spanning 13 countries comprising the UK, Croatia, Czech Republic, Denmark, Finland, France, Germany, Hungary, Luxembourg, the Netherlands, Poland, Portugal and Slovakia.
Established in 2009 and wholly owned by its senior managers, M7 manages a portfolio of c.1,400 assets comprising 115 million sq ft of GLA with a capital value of c. €8.1 billion.
M7 acts as an investment and asset manager to a series of funds that it has established and in which it co-invests alongside a large number of family office, high net worth and institutional investors. In addition, M7 has a number of joint ventures with private equity partners including Blackstone, H.I.G. Capital and Starwood Capital. M7 also has separate account mandates where it acts as a third party asset manager for the portfolios of institutional, family office and high net worth investors including M&G Investments and MIRA.
Headquartered in London with offices in Frankfurt, Paris and Warsaw, Catalyst Capital is a European investment and asset management company. Established in 1996, Catalyst Capital structures, purchases, develops and manages a significant portfolio of retail and office real estate in Europe. Since its inception, Catalyst Capital has invested more than €7.0 billion in nine countries and currently has approximately €1.6 billion of assets under management.
Source : Joint release