GFH acquires Midwestern property portfolio in third US purchase

GFH has announced its third US real estate acquisition of the past 18 months, with the purchase of a portfolio of Midwestern distribution, warehousing and industrial properties for about US$65 million, the Bahrain investment company said on Sunday.

GFH has forecast that the deal, which it expects to be reflected in its second quarter results, will provide an average cash yield of more than 8.5 per cent and an IRR of 10 per cent for its clients.

The identity of the seller was not disclosed.

“The portfolio is expected to provide a regular cash-flow stream resulting from long leases and [the] strong tenant base in the properties,” the company said in a statement.

“Further, the portfolio is well diversified in terms of tenant base, location and individual properties, strengthening the portfolio’s performance.”

The deal comes 10 weeks after GFH agreed to acquire a 30 per cent stake of No. 1 Palace Street in London’s Victoria for £100 million (Dh523.5m).

The deal follows the purchase of about 30 buildings in seven US states, and the acquisition of three multifamily properties in Texas and Georgia.

GFH shares were trading at about 0.69 per cent lower during Sunday morning trade in Dubai.

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John Everington

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