Incus sells logistics portfolio Login to M7
Spain’s Incus Capital has sold its Portuguese logistics portfolio Login to a fund managed by the M7 group on behalf of an investment fund.
The value of the deal, which was closed at the end of 2020, has not been divulged says property sector magazine Vida Imobiliária.
The Login logistics portfolio comprises seven assets in the Greater Lisbon and Greater Porto areas, all 100% rented.
In 2018 Incus Capital bought seven industrial and logistics properties covering 74,000m2 in Portugal, including Madera from a fund previously held by the Fundo Logistica e Distribuição.
According to the real estate constants CBRE, which acted on behalf of Incus Capital in the structuring and attracting capital, and in the due diligence of that deal, the portfolio in Portugal contained good quality assets that were 100% occupied.
Incus Capital Advisors SA is a Madrid based specialty credit investment advisory firm providing flexible credit solutions to mid-market European businesses.
Since inception in 2012, the firm has advised Incus investment funds on over €1Bn of invested capital in more than 60 transactions across various sectors. The advisory firm is owned and controlled by the Partners.
Incus announced the successful sale of the portfolio of Portuguese logistics assets that were financed in 2018 (“Project Login”) by Incus Capital European Credit Fund II (“Fund II”). Incus Fund II provided a flexible Mezzanine Loan to acquire Project Login.
Project Login comprised a portfolio of 7 fully leased logistics assets located across Portugal – the main tenant being Jerónimo Martins, a leading Portuguese supermarket retailer.
The acquisition financing for the 74,081m2 GLA portfolio was provided to a Portuguese based family office (the “Sponsor”).
Andrew Newton, Managing Partner of Incus, commented at the time: “Incus was critical in originating and securing the deal, the entire team in our Lisbon office have been instrumental in the success of this transaction. Working very closely with the Sponsor, we were active in the asset management of the portfolio throughout the life of the investment and then worked very closely with all parties for identifying and securing a buyer during the COVID-19 pandemic. The result of this hard work and dedication is superior equity like returns on a stable portfolio of logistic assets — downside protection with strong upside returns.”
Given the current regulatory and capital environment for traditional banks, European mid-market companies continue having limited access to capital. The current capital shortage has created an ideal environment for Specialty Credit firms like Incus to assume a greater role in funding European companies capital and growth needs.
Incus funds serve as a more flexible alternative to the traditional banking channels and a less dilutive alternative to private equity for companies needing transitional capital.
Incus has been designed with the right resources, expertise and capital needed to deliver substantial benefits to borrowers and, in return, superior risk adjusted returns to Incus funds investors. The firm employs a fundamentally bottom-up approach to our underwriting analysis and takes a very active role in structuring the investment processes.
It says that its core strength lies in its strong local presence, broad experience across numerous asset classes, and our ability to execute with high speed & flexibility to deliver a customised credit solution for clients. The firm sources transactions directly in the real economy via its proprietary deal origination network.
In November last year M7 (M7 Real Estate) helped to create a joint venture, the Portuguese Industrial Fund (PIF) which is involved in this latest deal.
M7 is a pan-European real estate asset manager and is a recognised name in international private equity.
It entered the Portuguese market with the purchase of two portfolios worth €41 million, with Portuguese bank Novo Banco providing around half of this amount.
“M17 announces the acquisition of a total of 10 assets in the industrial and logistics segments and office segment in Portugal through two operations worth around €41million, in the name of PIF, in a new joint venture between a recognised international private equity fund and M7,” stated M7 at the end of last year.