QSix Real Estate Finance grows its Dutch presence to more than €120 million in 18 months
QSix Real Estate Finance (QSix REF) is pleased to announce the closing of a 5-year €40m first mortgage loan to refinance two large industrial complexes located in Kapelle and Geldermalsen in The Netherlands.
Bolstering its presence in the region, this is the fourth loan closed by QSix REF since the opening of its Dutch office in 2021. It follows the announcement in April 2022 of a €25m acquisition loan for multi-let offices in The Hague by funds advised by Castleforge as well as the €34m refinancing in June 2022 of five assisted living properties on behalf of the Lenferink Group.
Following the completion of this loan, the total capital deployed by QSix in the Netherlands since launch stands at over €124m.
The assets in this latest deal are owned by COROOS, a leading player in Europe in the processing and preservation of vegetables and fruit, packaged for distribution to the major European supermarkets. Under the terms of the deal, all assets remain in COROOS’s ownership. As part of the transaction, the properties have been transferred intra-group to a new SPV which has entered into long-term internal leases.
QSix REF was able to identify a strong investment thesis for the portfolio. Property yields for Dutch industrial assets are high compared to neighbouring countries whilst vacancy rates of bulk storage assets are low. Additionally, many manufacturers are looking for production facilities closer to home and added storage capacity, in light of the coronavirus pandemic and the tragic war in Ukraine.
In parallel to the new property loan, COROOS has simplified its corporate financing by entering into a single new 3-year revolving asset-based facility in November 2022 with existing lenders Rabobank and ING. The size was expanded to €75m and ABN AMRO has joined the syndicate, meaning COROOS is now financed by all three main Dutch banks in their home market.
Adelaer Financial Architects acted as property debt advisor to COROOS.
Eduard Mantz, QSix Head of European Transactions, commented: “With this refinancing, we are delighted to support the family and management of COROOS in their continued efforts to produce affordable healthy products for generations to come.
“The loan benefits from defensive debt metrics and the leases provide for stable income. We believe COROOS is well-positioned for growth even under adverse economic scenarios and look forward to a productive relationship.”
Richard Corsmit, CEO of COROOS, added: “In today’s challenging environment of disrupted supply chains and cost inflation, our customers rely on us more than ever before to continue to deliver high quality products at competitive prices.
“To this end, we, together with Adelaer Financial Architects, have enjoyed working with the QSix team on this transaction, with the loan proceeds enabling investment into expanded production capacity and innovations to further improve product quality, cementing our reputation as cost leader and reliable supplier for our longstanding customers.”
