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M7 strikes profit share deal with tenant

The London-based investment manager will take a slice of the profits of office space provider Regus in lieu of rent.

M7 Real Estate, the London-based real estate investment and asset manager, and office space provider Regus have struck up a profit share leasing deal.

Under the terms of the deal Regus will provide M7 with a share of the profit generated by Regus at the M7 sites it occupies instead of paying rent.

The deal will cover multiple locations through a single transaction and initially focuses on six sites in the UK, with further opportunities being sought across mainland Europe.

“This transaction is a further demonstration of M7's ability to take an entrepreneurial and innovative approach to improving clients' returns and to create mutually beneficial partnerships with leading global businesses such as Regus,” said Richard Croft, chief executive of M7.

Earlier in the month M7 acquired a portfolio of 15 assets across three separate transactions in the Netherlands using capital from its latest European investment fund M7 European Real Estate Investment Partners III.

The firm held a first closing for the fund on €80 million back in January. Fund III has a value-add strategy and the firm is targeting assets that offer both income streams and asset management opportunities in the retail, office and the multi-let industrial sectors in both Germany and the Netherlands.