M7 and HIG Complete Dutch Acquisition Programme

20th June 2014 – MBay, the JV between Bayside Capital, a credit affiliate of H.I.G. Capital and M7 Real Estate Ltd, has completed its acquisition program after it notarised two further portfolios consisting of nine estates. The two portfolios have been acquired for a combined value of approximately €44 million. Both acquisitions will complete on the 30th June 2014.

The nine multi-let industrial estates are located predominantly within the Randstad. The latest acquisitions provide a further 106,000 sq.m of light industrial accommodation in 160 units.

David Ebbrell, M7’s Head of Acquisitions, said “These acquisitions build upon our strong concentration of assets within the Randstad area, complementing the existing portfolio and providing further occupier diversification for MBay”.

Richard Croft, M7’s Chief Executive, added “MBay now comprises 28 assets and totals approximately 290,000 sq m of accommodation across the Netherlands. A number of key asset management initiatives have been completed since MBay acquired its first assets in November 2013 and we have been successful in reducing voids and the average unexpired term for the portfolio through the signing of 33 new leases or lease extensions. Such activity continues to improve returns to MBay. Further leasing activity is anticipated over the coming months as the refurbishment program is completed”.

Sanjoy Chattopadhoy of HIG added “We have now completed the acquisition program for MBay and are focused on the asset management phase of our strategy, which will include substantial capital investment into the real estate to improve occupancy, income and ultimately capital values”.

Savills advised MBay on the acquisition whilst Starwood has provided senior debt to the JV.