Commercial real estate lender Starz Real Estate has provided a £40.9 mln (€47 mln) senior facility to a joint-venture between H.I.G. Capital and Ducalian Capital to support the refinancing and expansion of a portfolio of 10 self-storage properties with a total current lettable area of 293,000 m2, located throughout the UK.
The Starz facility comprises a refinancing tranche, an acquisition tranche, and a capex tranche to fund extensions across the portfolio.
H.I.G. Capital joined forces with Ducalian Capital in 2021, that had built up a self-storage portfolio under the Titan branch since 2012 in undersupplied areas of the UK. Over the years, the sponsors have significantly improved the performance of the assets that are now trading at near full levels of occupancy.
Stelios Theodosiou, managing director at H.I.G. Capital, said: 'We are pleased to partner with Starz Real Estate in our UK self-storage strategy, a space where we remain active and continue to see value-add investment opportunities coming to the market.'
Limor Shilo, head of origination at Starz Real Estate, stated: 'We are pleased to support H.I.G. Capital and Ducalian Capital with the next phase of the expansion of their Titan self-storage portfolio. Self-storage is a resilient asset class, and this portfolio benefits from high demand in under-supplied cities of the UK.'
HIG were advised by Trowers & Hamlins and Starz by Simmons & Simmons. CBRE provided valuation services.
Launched in July 2018, Starz is a commercial real estate lender focused on middle-market loans throughout Europe.
H.I.G. Capital is a Miami-based mid-cap alternative investment firm specialising in private equity, credit real estate, infrastructure and biohealth investments.
