29 Nov 2022 | by David Hatcher
Assets were assembled by seller across 2016 and 2017

• What M7 has sold a portfolio of UK logistics assets to Pictet and
  Marchmont
• Why It has concluded its business plan and increased the rent roll by
  almost 30%
• What next The duo is anticipating further rental growth

M7 Real Estate has completed the sale of a £62m UK logistics portfolio to Pictet
Alternative Advisors and Marchmont Investment Management, React News can
reveal.
The Oxford Properties-backed manager has offloaded the 17-asset collection,
which was bought over the course of 2016 and 2017 on behalf of a high-networth investor family, after completing its asset management plan and
increasing its rent roll by almost 30%.
Encompassing around 70 units the assets total over 1.2m sq ft, spread across
the country with average rents standing in the region of £4/sq ft. Pictet and
Marchmont utilised finance from Agfe to help fund the deal.
Marchmont has an exclusive partnership with Pictet to build its UK industrial
portfolio, deploying capital from the Swiss group’s first direct real estate fund,
which raised €700m last year. The joint venture has now assembled around
£300m of assets, including the Titan portfolio, which it bought in August for
£132m.
Environmental enhancement
Tim Lumsdon, director of Marchmont, said: “With over 60 tenancies, the
portfolio presents a real opportunity to add value through pro-actively managing
and the existing income stream. With average rents of around £4/sq ft, despite
the economic headwinds, we consider the portfolio to be well placed to deliver
performance during our ownership.”
Ed Jackson, head of UK real estate at Pictet, added: “We look forward to
working with our tenants and investing in the portfolio to improve performance
and environmental credentials.”
David Ebbrell, chief executive of M7, said: “Having assembled this portfolio in
2016 and 2017 and undertaken an asset management programme which
increased the rent roll by close to 30%, we have now concluded our business
plan. This sale allows us to crystallise a good return for our client while leaving
further potential for value enhancement in the future.”
TT&G advised M7. DTRE advised Marchmont and Pictet, with Brotherton
sourcing the debt.