M7 Box+ REIT intends to float a portfolio of seven ‘e-warehouses’ worth £228.9m on IPSX. The portfolio comprises seven properties totalling 811,712 sq ft located across the UK, which was assembled by M7 Group.
As at 31 December 2022, the 100% occupied portfolio was let to 40 occupiers with a contracted rent of £16.2m per annum and was valued at £228.9m. Tenants of the warehouses include B&Q, DSG Retail, Aldi, Dunelm, Matalan and Pets at Home.
M7 Real Estate Financial Services will serve as alternative investment fund manager to M7 Box+ REIT and M7 Real Estate will act as asset manager to the company in respect of the portfolio. M7 will directly own circa 4.69% of the company’s share capital after admission.
Richard Croft, executive chairman of M7, said: “The proposed admission of M7 Box+ REIT to IPSX Wholesale further emphasises the platform’s ability to act as a capital markets alternative for property owners, being the fourth company to list on the exchange in two years. In this case IPSX has allowed investors in a Jersey-based fund to on shore their investment into a new vehicle that benefits from the UK government’s tax efficient REIT regime with shares traded on a regulated and liquid exchange.
“M7 Box+ REIT, initially comprising seven let and operational assets which are immediately income producing, will invest in a geographically diversified portfolio of e-warehouse properties across the UK. We believe that the historic lack of distinction between generic retail assets and retail warehouses has led to mispricing for these properties which are supported by strong market fundamentals.
“Despite Covid-19 and the current economic headwinds, well-located e-warehouses have demonstrated a consistent level of rental growth in recent years due to robust occupier demand, driven by continued e-commerce penetration and an increased focus from businesses on their supply chain. As such, we have identified an opportunity in this subsector, which offers substantial scalability potential in the UK, supporting our aim to provide shareholders with a sustainable level of income together with the potential for income and capital growth.”
The company expects admission and commencement of dealings on IPSX to commence in April 2023. Dickson Minto WS is acting as IPSX lead adviser.
