LONDON: Gatehouse Bank, the London-based Kuwaiti-owned wholesale Sharia-compliant bank. has completed the acquisition of an industrial US-based real estate portfolio.
It consists of 20 industrial properties leased to 12 tenants with an average remaining lease term of 14 years.
The $155 million portfolio, which is stabilised at 100 per cent 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 9pc over the expected five-year holding period as well as an attractive internal rate of return 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 is a major achievement that has been secured in the US real estate market, as the availability of high quality investment opportunities remains scarce," said Gatehouse chairman Fahed Boodai. "Gatehouse did detailed research 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," he added.
This latest acquisition brings the total value of Gatehouse Bank's real estate acquisitions in the UK and US to more than $700m.