11 Nov 2013
HIG and M7 Close Dutch Industrial Joint Venture
11th November 2013 – Bayside Capital, a credit affiliate of H.I.G. Capital and M7 Real Estate, the UK based specialist Industrial Asset Manager have closed a joint venture, targeting the light industrial real estate market in the Netherlands.
The JV, named MBay Light Industrial, is targeting the high yielding multi let industrial market in the Netherlands. MBay has recently notarised 12 assets with a total value of c.€40 million from three separate vendors. The combined portfolio provides 108,948 sq m in 241 units and has over 117 tenants. The JV has the capacity to invest substantial capital into the sector, over an acquisition period of up to 18 months. The JV has appointed M7 Real Estate as the investment advisor to the firm and M7’s Dutch operation, M7 Cortona BV, as the asset manager.
Richard Croft, M7’s Chief Executive said “This is a hugely important transaction for M7. We see substantial opportunity in the light industrial market in parts of Europe and to close our first JV with an organisation such as HIG is very exciting for us.”
David Ebbrell, M7’s Head of Transactions added “The portfolio that has been acquired benefits from a strong initial cash flow with the opportunity to drive rental income forward through the letting up of the current vacancy. The majority of the portfolio is contained within the Randstad, which makes us optimistic for the future potential capital value growth of the portfolio.”
Sanjoy Chattopadhyay of HIG said “The Dutch market has suffered substantial dislocation since the collapse of Lehmans and we are of the opinion that selective investing, combining both the right management and right sectors, provides the opportunity to generate high returns”.
Savills acted for MBay on the acquisitions with Starwood Capital proving the debt.