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Japanese deal sees M3’s Evergreen fund mostly invested

With the approximately $300 million buyout of a Japanese storage company, M3 Capital Partners has brought its $3bn, 2005 vintage fund to about 70% invested.

Chicago-based M3 Capital Partners has acquired Quraz, Japan’s largest self-storage company, out of its $3 billion Evergreen Real Estate Partners fund, bringing the value-add fund to about 70 percent invested.

The size of M3’s Quraz deal was not disclosed, but media reports have placed the deal size between ¥30 billion (€227 million; $307 million) and ¥50 billion. 

M3 acquired Quraz from an unnamed US institutional investor, which had been invested in the self-storage company since its inception in 2001, according to a Quraz spokesman. The Tokyo-headquartered company has 29,000 self-storage units across 10 cities in Japan, making it the largest such owner-cum-operator in Japan.

M3’s investment was financed with ¥20 billion of debt from Prudential Mortgage Capital’s Tokyo branch, part of US insurer Prudential.

“Evergreen shares Quraz management’s objectives to continue to invest in and improve upon the existing Quraz platform, increase customer awareness of self-storage in Japan, and grow the network of Quraz locations to service increasing demand,” the spokesman said.

Evergreen had $2 billion of its equity committed at the end of 2012. This most recent investment brings its fund to approximately 70 percent invested. The fund has a total of 11 investments across nine countries, including two other self-storage platforms. One of those is in the US (The Lock Up Self Storage with 28 properties) and one is in Scandinavia (Pelican Self Storage with 28 properties), according to the statement.

M3 did not respond to further requests for comment by press time.

With a total of $3.4 billion assets under management from its own investments, M3 has also advised on over 200 real estate transactions since 1991, with a total capitalization of more than $86 billion, according to the firm’s website.