Kuwait-linked bank sells UK property for $53m

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Gatehouse Bank has sold the UK headquarters of Procter & Gamble.

Gatehouse Bank has sold the UK headquarters of Procter & Gamble.

Kuwait-owned Gatehouse Bank, a Shariah compliant investment bank based in London, said on Wednesday it has completed the sale of the Procter & Gamble UK headquarters building, in a deal worth £33.68m ($53.8m).

Gatehouse, whose parent company is the Securities House in Kuwait, said the net initial yield on the deal was 7.49 percent.

The company said the sale was made to a private Middle Eastern property investor, without giving further details.

It added that the deal represented an "excellent return" for Gatehouse's investors, who have benefited from annual returns of 10 percent during the three year holding period, and an overall 26 percent return on investment.

Acquired for £31.5m in December 2009, the Procter & Gamble building was the first property acquisition Gatehouse advised on.

The Property occupies a prominent position within one of the leading business parks in the South East of England, providing 109,290 sq ft of Grade A office accommodation.

The property is fully leased to Procter & Gamble until June 2020, with no breaks.

Adam Cavanagh, executive vice president and head of Real Estate said: "Investors are continuing to look for well positioned buildings with a secure, long-term income stream. When acquired, the P&G building typified these criteria. However, now the lease term has fallen below 10 years, selling at this point guarantees the best return to our investors."

Since its inception in 2008, Gatehouse Bank said it has established a global portfolio worth in excess of £1.25bn.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Mall talk

Mall talk

Plans for Dubai’s Mall of the World have made headlines all over...

1
Time to invest?

Time to invest?

Foreign investors are seeing Qatar as an ideal place to purchase...

1
Heading for a correction?

Heading for a correction?

Property prices may have held relatively steady in Lebanon during...

1
Most Discussed
  • 3
    Akbar Al Baker’s double standards?

    Nobody in the aviation industry takes this guy seriously. He is the court jester, saying one thing to get headlines and satisfy his rampant ego while doing... more

    Wednesday, 30 July 2014 10:21 AM - Ronald
  • 1
    UAE issues new law to crack down on shark finning

    It is a start! An excellent example to be nurtured for greater protection, respect and treatment of other living things.
    But like so many other laws... more

    Tuesday, 29 July 2014 12:08 PM - Jane