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Sat 23 Nov 2019 12:53 AM

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Saudi's Sidra inks $206m deal for US industrial properties

Sidra Capital says portfolio is comprised of 30 fully occupied single tenant net leased assets spread across 15 US states

Saudi's Sidra inks $206m deal for US industrial properties

Hani Baothman, vice chairman of Sidra Capital.

Saudi-based Sidra Capital, a Shari’ah-compliant asset manager, has completed its second US industrial real estate acquisition with a deal worth $206 million.

The portfolio is comprised of 30 fully occupied single tenant net leased assets spread across 15 key states, the company said in a statement.

It added that the portfolio benefits from a roster of strong mid-market and large companies which have occupied their respective assets for an average of 27 years.

With a weighted average unexpired lease in excess of 13 years, the portfolio is expected to deliver strong and stable cash yield for the investment hold period, Sidra said.

The purchase of the portfolio follows the aggregation of a portfolio of six US student accommodation assets and the acquisition of a site occupied by Sainsburys in the United Kingdom earlier in the year.

These acquisitions have increased Sidra Capital’s total assets under management to $2 billion, of which over $800 million is in the United States.

“The outlook for the US industrial real estate market is extremely positive with expectations of being one of the most profitable markets in the country, amid low vacancy rates of under five percent. With the continued integration of logistics and retail, low interest rates, growing demand and evolving trend of manufacturing on-shoring, the US industrial real estate sector will remain resilient and offer opportunities for growth and re-leveraging and enhancing of industrial assets’ value,” said Hani Baothman, vice chairman of Sidra Capital.

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