HIG Capital’s real estate debt arm has provided a $72m (€70.7m) loan to assist North American self-storage firm Mini Mall Storage Properties to buy a 5,000-unit portfolio.
HIG Realty Credit Partners has originated the loan to assist in the acquisition of the self-storage portfolio located in three states across the Southeast US.
Michael Mestel, managing director at HIG Realty Credit Partners, said: “We are excited about this unique opportunity to finance an asset class with such strong fundamentals.”
Adam Villard, CEO at Mini Mall Storage Properties, said: “We are pleased to partner with HIG Realty Credit Partners as we continue to scale and grow our self-storage business.
“We see many strategic opportunities across the US to consolidate this fragmented industry and are looking forward to working with HIG as we execute on our robust acquisition plans.”
The seller of the self-storage portfolio is in the process of expanding its portfolio and is close to completing 600 new units. Mini Mall Storage Properties said it plans to lease up the additional units following the acquisition.