Three portfolio deals highlight yield gap between industrial and retail
M7 Real Estate poised to buy retail portfolio yielding 7.15% as multi-let industrial yields come in below 5%.
M7 Real Estate is under offer to buy a portfolio of predominantly out-of-town retail parks, known as the Alpha portfolio, which offers a much more attractive yield than that of the industrial assets it usually invests in.
It has struck a deal with Cromwell Property Group to buy the portfolio of five out-of-town retail warehouses, one in-town retail unit, a leisure asset and a car showroom for around £68m, reflecting a yield of around 7.15%.
The deal reflects a growing trend of real estate investors targeting retail warehouses as industrial yields sharpen to record lows.
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