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Extra
Evergreen Equity Commitment
$400 million
Company Overview
Extra MSA is an owner, developer and operator of motorway service areas (“MSAs”), acquired out of administration by Evergreen from Lloyds Banking Group in October 2010. The acquisition of Extra MSA involved a complex public auction process, which M3 navigated in collaboration with the former senior management of Swayfields, Extra MSA’s predecessor company. In 2012, Extra completed its flagship MSA development in Cobham, on the M25 London orbital motorway, which was one of very few possible sites for new MSAs given strict spacing criteria in this sector. In March 2013, Extra purchased a national portfolio of nine MSAs operated by Welcome Break out of administration. This strategic acquisition doubled the number of MSA assets that Extra owns to 18, and reflects the platform’s ongoing commitment to invest in the UK’s motorway infrastructure.
Strategy
Develop, acquire, own and operate a high-quality portfolio of MSA properties with a stable, long-term income profile backed by strong tenant covenants. The original nine Extra MSA properties are operated under a lease structure, unique among MSA operators in the UK, and the nine properties acquired by the platform in 2013 are operated by Welcome Break.
Portfolio
18 existing MSA properties at Abington, Baldock, Beaconsfield, Blackburn, Cambridge, Charnock Richard, Chesterfield, Cobham, Cullompton, Fleet, Hartshead Moor, Hopwood Park, London Gateway, Michaelwood, Oxford, Peterborough, Sedgemoor Northbound, and Winchester. Extra's MSA tenants include Shell, BP, McDonald’s, KFC, Starbucks, WHSmith, Welcome Break and Moto, among others.
Website
www.extraservices.co.uk
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Centerscape
Evergreen Equity Commitment
€125 million (approximately $175 million)
Company Overview
Centerscape was established in 2007 and is focused on the acquisition, development and ownership of high-quality food-anchored retail properties in Germany. Applying its research-driven approach to investing, M3 identified German food-anchored retail as an attractive macro-market opportunity. Given a lack of existing experienced and quality operators at the time, Evergreen backed a management team to create Centerscape as a start-up business and has worked closely with management to lay the foundations for successful platform growth. Today, Centerscape is an institutional-quality, food-anchored real estate company that is well recognized within its sector and market.
Strategy
Acquire, develop and own high-quality food-anchored retail properties in Germany, in densely populated areas with favorable and / or improving demographics and an above-average disposable income.
Portfolio
67 operating properties totaling approximately 180,000 square meters of leasable area throughout Germany. Food-anchored retail tenants include REWE Group, EDEKA Group and Schwartz Group, among others.
Website
www.centerscape.de
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Essential Living
Evergreen Equity Commitment
$200 million
Company Overview
Essential Living was established in 2012 and is focused on the development, operation and ownership of private rented residential properties in London, UK. M3 targeted this geography and sector having identified strong long-term rental growth prospects, resulting from demographic demand drivers and decreasing home ownership affordability, which is leading a structural shift towards renting in the London residential market.Essential Living was formed by M3 as a start-up company alongside the former management team of Essential Land, an established residential development company in the UK with expertise in land acquisition, planning and development. Today, Essential Living is well-positioned to access the London private rented sector, against a market backdrop of fragmented ownership and limited investment competition from other institutional investors.
Strategy
Develop, own and operate a scaled portfolio of high-quality branded purpose-built residential properties in attractive London sub-markets. Essential Living has the capacity to take upfront planning and development risk.
Portfolio
Over 200 residential units under development, with an additional 500 units currently in the investment pipeline. At maturity, Essential Living is targeting a portfolio of over 2,000 units.
Website
www.essentialliving.uk.com
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Kitson & Partners
Evergreen Equity Commitment
$350 million
Company Overview
Kitson & Partners was established in 1992 and specializes in master-planned community developments, including residential and commercial uses (typically retail) in Florida. M3 initially targeted Florida land development as a geography and sector that exhibited the potential for superior relative long-term growth prospects. Evergreen pursued a recapitalization of Kitson in 2006 and has since participated in all of the company’s development and acquisition initiatives.Despite the impact of the global financial crisis on Florida’s housing sector, key demographic metrics are still expected to materially outpace U.S. averages over the next 20 years. As Florida’s housing sector has entered recovery, compelling pipeline opportunities for attractive investments in prime locations have emerged. A significant portion of Evergreen’s commitment to Kitson is unfunded, and remains available for additional land development opportunities.
Strategy
Develop large, low-basis multi-phase projects with related commercial space in high-barrier prime Florida markets and submarkets.
Portfolio
Four master-planned community projects and 10 retail properties, comprising over 20,000 residential units and nearly 7.0 million square feet of commercial space.
Website
www.kitsonpartners.com
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The Lock Up
Evergreen Equity Commitment
$125 million
Company Overview
The Lock Up was established in 1976 and is focused on the development, acquisition, ownership and operation of self-storage facilities in affluent, high-barrier and densely populated submarkets within the U.S. M3 has substantial experience in the self-storage sector, having advised Security Capital Group on strategic corporate self-storage-linked investments in the 1990’s, as well as having raised capital and advised on mergers and acquisitions for numerous self-storage operators and developers in the U.S. and UK. Evergreen is also a majority owner of Pelican Self Storage, a company focused on the development, ownership and operation of self-storage facilities in Scandinavia. Leveraging its extensive self-storage experience, Evergreen pursued a recapitalization of substantially all of The Lock Up’s properties in 2005 and has since participated in all of the company’s development and acquisition initiatives.
Strategy
Develop, acquire, own and operate high-quality self-storage facilities in densely populated, high-barrier, affluent U.S. submarkets.
Portfolio
Approximately 30 facilities in seven states (Florida, Hawaii, Illinois, Minnesota, Massachusetts, New Jersey and New York).
Website
www.thelockup.com
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NorthStar
Evergreen Equity Commitment
$200 million
Company Overview
NorthStar Memorial Group was established in 2004 and is focused on the acquisition, ownership and operation of cemeteries and funeral homes in select markets within the U.S. The company typically targets “combination” facilities, characterized by a large cemetery with a funeral home either on-site or in close proximity. At the time of Evergreen’s initial commitment to NorthStar, M3 believed that cemeteries and funeral homes presented a contrarian investment opportunity, where cyclically low valuations reflected a relatively capital-starved environment in the sector. In addition, M3 was attracted to the lack of correlation to broader economic cycles and the high barriers to entry of this niche sector. Evergreen pursued a recapitalization of NorthStar in 2006 and has since participated in all of the company’s acquisition initiatives.
Strategy
Acquire, own and operate “combination” facilities characterized by a large cemetery with a funeral home either on-site or in close proximity and grow market share / provide additional cash flow stability by advancing a “pre-need” marketing program. In addition, NorthStar capitalizes on the growing cremation trend by investing in Smart Cremation, its wholly owned subsidiary focused on the cremation market.
Portfolio
25 cemeteries and 30 funeral homes in eight states (California, Florida, Hawaii, Illinois, Ohio, Oklahoma, Tennessee and Washington).
Website
http://www.nsmg-ext.com/
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Pelican
Evergreen Equity Commitment
$175 million
Company Overview
Pelican Self Storage was established in 2009 and is focused on the development, redevelopment, acquisition and operation of self-storage facilities in Scandinavia. Evergreen is also a substantial owner of The Lock Up’s self-storage portfolio in the U.S. Leveraging its self-storage experience, Evergreen established Pelican as a start-up entity to develop and operate self-storage facilities within the underserved Scandinavian market. Since inception, Pelican has established market presence and is a market leader in Helsinki and a market participant in Copenhagen and Stockholm.
Strategy
Ground-up development, redevelopment, acquisition and operation of self-storage facilities in the underserved markets of Finland (Helsinki), Denmark (Copenhagen), and Sweden (Stockholm).
Portfolio
20 operational sites and 6 ground-up development sites across Helsinki, Copenhagen and Stockholm.
Website
www.pelicanselfstorage.com
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Portico Investments
Evergreen Equity Commitment
$300 million
Company Overview
Portico Investments was established in 2007 and is focused on the acquisition, development and ownership of food-anchored retail properties in Central and Eastern Europe. In July 2007 Evergreen, in conjunction with an experienced management team which had been operating in the region since 1999, restructured an existing portfolio of high-quality food-anchored retail properties into Portico. Portico has developed strategic relationships with a number of leading, typically international food retailers with operations in Eastern Europe, including Billa (REWE Group, Germany), Plus Romania (Schwartz Group, Germany) and SPAR Austria. Today, Portico is an institutional-quality, food-anchored real estate company that is well recognized within its sector and market.
Strategy
Acquire, develop and own food-anchored retail properties in city-center locations and commercial / residential clusters, in both primary and secondary cities. Portico pursues investments that generate long-term cash flows supported by strong international tenant covenants.
Portfolio
60 properties located in the Czech Republic, Hungary, Poland and Romania, comprising approximately 200,000 square meters of net leasable area.
Website
www.porticoinv.com
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Raintree Partners
Evergreen Equity Commitment
$300 million
Company Overview
Raintree Partners was established in 2007 and is focused on value-add acquisitions, ground-up development or redevelopment, and ownership of multifamily properties in California. M3 targeted California multifamily as a geography and sector that exhibited the potential for outsized relative growth prospects over the long term. At the time of Evergreen’s commitment to Raintree, pricing for existing companies and portfolios was prohibitive, leading Evergreen to form the company as a start-up business alongside Raintree’s CEO, an industry veteran with over 30 years of sector experience on a local, regional and national level. Today, Raintree is recognized as a reputable owner and operator of high-quality multifamily properties throughout California.
Strategy
Own and operate multifamily properties in high-growth California submarkets, through the acquisition of “value-add” properties and ground-up development or redevelopment.
Portfolio
Over 2,900 residential units across 19 properties in Northern California, Greater Los Angeles and San Diego.
Website
www.raintreepartners.com
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Urbanest
Evergreen Equity Commitment
$350 million
Company Overview
Urbanest was founded in January 2008 and is focused on the development, acquisition, ownership and operation of quality branded student accommodation in Australia and the UK. Urbanest provides a student-specific “direct-let” offering, with a particular focus on international students who typically seek high-quality but affordable accommodation. In 2008, M3 applied its experience in the student housing sector in the UK to identify Australia’s nascent student accommodation market and backed a UK industry veteran to create and grow the Urbanest platform in Australia.In 2009, Evergreen broadened this mandate to include the UK (specifically London) to take advantage of: (i) growing demand for high-quality student accommodation as increasing numbers of international students are attracted to London’s high-quality academic institutions; (ii) a retreat from the market by incumbent student accommodation developers; and (iii) a correction in UK real estate prices. Urbanest’s senior management has considerable experience and knowledge of the UK and London student accommodation markets, positioning it to access this opportunity.
Strategy
Develop, acquire, own and operate quality branded student accommodation in attractive real estate markets in Australia and the UK.
Portfolio
In excess of 6,500 beds between 8 properties in Australia (Brisbane, Adelaide, Sydney and Melbourne) and 5 properties in London, 8 of which are developments due for completion between 2013 and 2015.
Website
www.urbanest.com.au/en
www.urbanest.co.uk/en
