|Gatehouse Bank acquires diverse US industrial real estate portfolio with an oversubscription of 140%|
|Wednesday, 25 July 2012 14:12|
Gatehouse Bank plc, a Kuwaiti-owned wholesale Shariah compliant bank based in London has completed the acquisition of an industrial US-based real estate portfolio of 20 industrial properties leased to 12 tenants with an average remaining lease term of 14 years (the “Portfolio”).
The USD 155 Million Portfolio, which is stabilized at 100% occupancy, has been acquired in joint venture partnership with the Brennan Investment Group. Investors in the transaction are projected to receive stable net cash yields of 9% over the expected 5-year holding period as well as an attractive IRR upon an opportunistic exit from the investment. The Portfolio’s unique diversity of industry, geography, and tenancy serves to bolster the stability of returns generated by the properties.
The Portfolio’s tenants are recognized leaders in such industries as steel manufacturing, engineering, electronics and plastic production, among many others. The Portfolio includes assets located in the West, Midwest, Northeast, Southeast, and Southwest regions of the U.S.
Mr Fahed Boodai, Chairman of the Board of Directors at Gatehouse Bank stated, “The Portfolio is a major achievement that has been secured in the U.S. real estate market, as the availability of high quality investment opportunities remains scarce. Gatehouse has engaged the market following detailed research and analysis of the sector, and ensured the Bank’s credit and risk departments have reviewed each property to ensure that investors are delivered a solid investment that is strengthened by an attractive current yield and are let to recognised industrial tenants.
This latest acquisition brings the total value of Gatehouse Bank’s real estate acquisitions in the UK and US to more than USD 700 million. The investment case for property in this sector remains strong, and Gatehouse has met investor criteria for investment opportunities that offer secure income streams and consistent yield return on investment,” added Mr Boodai.
Michael Brennan, Chairman and Managing Principal of the Brennan Investment Group stated, “Over the past year and a half, US industrial markets have demonstrated remarkable strength, with nearly every major market posting positive absorption and rising occupancies. The acquisition of 20 critical use facilities, amidst resurgent tenant demand, provides our investment a high degree of predictability both now and in the future.”
Gatehouse is a fully Shariah compliant investment bank based in the City of London bringing fully researched, high-quality investment assets leased by international and leading domestic tenants. The U.S. Industrial Portfolio is the fourth US-based real estate investment offering presented to the market by Gatehouse Bank, which also includes the successful completion of the USD 54m VA Oceanside Outpatient Clinic realised investment in December 2011. Gatehouse continues to build an enviable track record with the completion of over USD 700m in Shariah compliant real estate acquisitions to date.
Gatehouse Bank was assisted by Arch Street Capital Advisors and sister company, GSH in this transaction.
Source: Gatehouse Bank