In a sign that investors, anxious to buy into UK sheds, are running out of sheds to buy, European asset manager M7 Real Estate has set up its own development arm.
By taking on the development risk themselves, M7 can ensure a steady supply of industrial assets to buy, and opens the prospect of acquiring sites in need of development that other investors would not take on.
The new initiative will build on the Group’s growing track record in developments, in particular its current 750,000 sq ft phased mixed-use Brownfield redevelopment of ‘The Green’ in Solihull in the West Midlands. This 47 acre site was the historic headquarters of automotive and aerospace manufacturer Lucas Industries, which is now part of German engineering group, ZF.
M7 Developments will focus on substantial Brownfield, medium term redevelopment opportunities, principally in the UK, combining M7’s expertise in managing extensive, multi-let income producing assets with the opportunity to add value through future regeneration, where such assets are approaching the end of their economic lives.
Established in 2009 and wholly owned by its senior managers, M7 manages a portfolio of around.1,400 assets comprising 115 million sq ft with a capital value of. €8.1 billion.