9 May 2014

HIG and M7 Make Further Dutch Acquisition

9th May 2014 – MBay NL Portfolio expanded to approximately 2,000,000 sq ft.

MBay Light Industrial, a joint venture between Bayside Capital, a credit affiliate of H.I.G. Capital and M7 Real Estate has recently completed the acquisition of seven assets with a total value of c.€23 million from two separate vendors. The new acquisitions provide approx. 750,000 sq ft (73,000 sq m) in 94 units. The portfolio was acquired with a net initial yield of approx. 10.5% and a full reversion of 14%. The combined portfolio now has a value in excess of €60,000,000 in 19 assets (providing over 2,000,000 sq ft of space) with the majority of the portfolio concentrated in the Randstad.

David Ebbrell, M7’s Head of Transactions said “This acquisition is an exciting addition to MBay Light Industrial, benefiting from a strong initial cash flow with the opportunity to drive rental income forward through the letting up of the current vacancy. As with the initial acquisitions, the majority of the portfolio is contained within the Randstad, which makes us optimistic for the future potential capital value growth of the portfolio. A number of key asset management initiatives are underway and have already reduced acquisition voids whilst continuing to improve returns to MBay Light Industrial. Further leasing activity is anticipated over the coming months”.

Sanjoy Chattopadhyay of HIG added “We expect to increase our exposure to this venture over the coming months and believe that we will be able to generate strong distribution led returns from this investment as the asset management strategy is implemented”.

Savills acted for MBay on the acquisitions with Starwood Capital providing the debt.