ING has financed Bayside Capital’s €70m purchase of a Dutch portfolio from IVG.
Bayside, a credit affiliate of HIG Capital, has bought six office buildings and one shopping centre from IVG’s institutional fund management business. The portfolio totals 52,000 sq m.
The five-year loan of around €45m reflects a loan-to-value of 65% with a margin of close to 350 basis points.
The Dutch real estate market was one of the most distressed during the downturn and has been one of the last to recover. But investors and now financiers are beginning to re-enter in an attempt to gain greater yield and exposure to risk.
Ahmed Hamdani (pictured), managing director in the UK at Bayside Capital, said: “We believe the Dutch market presents excellent value and this transaction reflects HIG’s commitment to growing its continental European real estate and NPL business.”
Sanjoy Chattopadhyay, principal at Bayside Capital, added: “Through our specialists in retail and office asset management, the focus of the business plan will be on substantial capital investment to improve occupancy, income and ultimately capital values.”
ING has been ramping up its lending activity across Europe this year and in June it funded Round Hill Capital’s purchase of a €180m residential portfolio in the country with a €120m loan.
Bayside made its first Dutch investment last November via the MBay Netherlands joint venture, when it bought a 1m sq ft for €36m from Valad Europe. The deal was financed with 5% debt from Starwood Capital.
This was followed in April by a purchase alongside joint venture partner M7 Real Estate of around €30m of light industrial property in the Randstadt area.