M7 Box+ REIT is the latest company planning to join International Property Securities Exchange (IPSX). The property portfolio to be acquired by the company is valued at £228.9m. Dealings are expected to start during April.
The portfolio is being acquired from Jersey-based closed end fund M7 Box+ II LP. The new company can apply to become a REIT and benefit from the advantages of that status. No additional funds will be raised during the flotation.
The shares will be introduced to the Wholesale market of the IPSX. M7 Real Estate Financial Services is the alternative fund manager to the company, while M7 Real Estate will be asset manager. M7 Real Estate owns 4.69% of the company.
The property portfolio has seven let and operational e-warehouses with 40 occupiers. The tenants include B&Q, DSG, Aldi, B&M, Dunelm, Matalan, DFS, Carpetright, Pets at Home and Fitness First. In the fourth quarter of 2022 the properties were fully let with a weighted average unexpired lease term of 4.81 years.
Demand for capacity that combines retail and logistics is strong. An e-warehouse is defined as a warehouse with enhanced planning uses providing flexibility.