The Investment Strategy
In October 2017, MCB Group announced its real estate investment strategy, whereby the group will act as seed investor for the acquisition of prime real estate yielding assets with a view to giving MCB’s investing customers access to a different asset class.
The real estate investment activity will be conducted through MCB Real Assets, a wholly owned subsidiary of MCB Group, and will initially focus on the Mauritian market. Depending on opportunities, the strategy may be extended to other geographies where MCB has established relationships and/or operations, and/or to other real assets investment strategies, including development and value-add.
It is envisaged that MCB Real Assets will:
- Build a portfolio of EUR 200m to EUR 250m;
- Seek assets in a broad range of sectors, including hospitality, renewable energy, logistics, telecoms and digital infrastructure
- Focus on lease contracts to credit worth tenants and denominated in MUR, EUR or USD;
- Implement an attractive and consistent dividend distribution policy;
- Have a targeted Loan-to-Value of up to 60%; and
- Eventual exit through an IPO or sale to yield searching investors
Why MCB Real Assets
MCB Real Assets offers a one-stop shop to real estate owners, developers, investors and managers. We originate, structure and advise on transactions as well as provide equity and arrange debt financing.
Relationship with investors
Acquisition of 93.4% stake in COVIFRA
In October 2017, MCB Real Assets completed the acquisition of 84.4% stake in COVIFRA, the owner of the Club Med, La Pointe aux Canonniers, a 394 keys resort located on the north coast of Mauritius, for an enterprise value of EUR 58.5 million. MCB Real Assets subsequently acquired a further 9% in COVIFRA. As part of the transaction, COVIFRA entered into a triple net lease with Club Med. Refurbishment works amounting to over EUR 40 million have been conducted since the acquisition.
COVIFRA is listed on the Development and Enterprise market of the Stock Exchange of Mauritius.
Investment in Le Domaine de Grand-Baie
In October 2018, MCB Capital Markets structured in a EUR 58.5 million project to develop Le Domaine de Grand-Baie, a 155 unit senior serviced residence located in Grand Baie, Mauritius. MCB Real Assets is a shareholder in the project alongside AEGIDE DOMITYS, a leading operator of senior residence in France, and 2Futures, a leading property developer in Mauritius.