M7 Real Estate buys Graeme House to reposition towards flexible office space

By James Wallace - Tuesday, May 15, 2018 10:15

M7 Real Estate has acquired Graeme House in Liverpool for £8.07m from Downing, reflecting a net initial yield of 13.5%.

The acquisition was on behalf of M7 Real Estate Investment Partners III, which targets regional value-add commercial real estate opportunities in the UK.

Graeme House comprises 87,002 sq ft of office space and is 92% let to 22 tenants, including The Secretary of State for Communities & Local Government, Reed In Partnership, Keaney & Co Solicitors and New College Manchester Ltd.  The property generates circa £1.2m of passing rent per annum with a weighted average lease term of 1.9 years and presents an opportunity for active asset management.

Will Hunting, senior acquisitions manager for M7 Real Estate, said M7 business strategy for the asset it to reposition Graeme House “to accommodate a market that has seen a surge in demand for high quality, flexible and small suite office space”.

James Wallace is a freelance consultant and can be reached via Linkedin or email: jawallace32@gmail.com

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