Bahrain-based GFH Capital Limited, a fully owned subsidiary of GFH Financial Group, has agreed to exit from its US industrial portfolio. The value of the deal was not disclosed.
GFH said the exit is expected to deliver approximately 40% return to investors over the holding period.
The portfolio consists of 26 assets with an area covering over 2.7 million square feet. These assets are located across the Midwest region of the US and are split equally between single and multi-tenant facilities serving as distribution, warehousing and other industrial real estate sites.
According to GFH’S website, the company has acquired the portfolio (US Industrial Portfolio I and II) in 2016 for totaling $170 million.
“We’re delighted to announce this successful exit to take advantage of strong market demand in the US for prime industrial space and proud of the strong performance delivered by the investment. We believe this is the right time in the cycle to exit from the 2016 industrial vintage in keeping with GFH’s investment philosophies of capitalizing on appropriate market conditions for entry and exit from its investments. This transaction, therefore, serves to further underscore GFH’s capabilities and expand its proven track record of both making sound investments and realizing value at exit,” said Nael Mustafa, Co-Chief Investment Officer at GFH.
Our aim is to continuously select well positioned assets with strong income generation capabilities and deliver a full cycle investment to our investors with effective exit strategies. We continue to grow our presence in the US and global real estate markets in areas where we see great opportunity for GFH and our investors and the industrial and logistics space is core to our focus and activities. We are building a strategic, diversified portfolios of assets in this segment of the global property market. This is demonstrated by our recent investments in central distribution facilities in the United States leased out to leading high caliber tenants including Michelin and Fedex,” he added.
He continued, “We are also currently in discussions to acquire further assets in the space similarly leased to strong creditworthy tenants, which will allow our investors to build a strategically diversified portfolio within the growing industrial subsector not only in the US but in Europe and Asia as well in the near term.”