Europa Capital has backed M7 to create a joint venture to acquire multi-let industrial assets in the UK.

The joint venture - the Light Industrial Property Partnership - will have the capacity to buy more than £130m of assets.

The partnership made its debut purchases this week when it acquired three industrial estates in Milton Keynes, Tewkesbury and Didcot for around £15m at a net initial yield of more than 10%. It has placed a further £30m of industrial assets under offer and is expected to complete the transactions within the next few weeks.

M7 Real Estate has been appointed as the asset manager for the partnership.

Noel Manns, principal of Europa, said: “We believe in the long term fundamentals of multi-let industrial estates in the UK although we are being selective in our purchases, as we believe the occupier market will remain weak for at least the next 24 months. Without very hands on active management, this asset type will not perform in the short term. We believe that M7’s very focused asset management capabilities will deliver out-performance.”