Unit of Bahrain's GFH acquires $65m US industrial real estate assets

GFH Capital Limited buys portfolio of warehousing and industrial properties spread across the Midwest region
Unit of Bahrain's GFH acquires $65m US industrial real estate assets
Hisham Alrayes, CEO of GFH. (Photo for illustrative purposes only)
By Staff writer
Mon 13 Jun 2016 01:39 PM

Bahrain-based GFH Financial Group (GFH) has announced that its Dubai unit has signed an agreement to acquire a portfolio of industrial real estate located in the United States for about $65 million.

GFH Capital Limited said in a statement that the portfolio comprises several distribution, warehousing and industrial properties spread across the Midwest region of the US. 

It said the portfolio is expected to provide a "regular cash flow stream resulting from long leases and strong tenant base in the properties". 

The new acquisition is the third in the US over the past 18 months following deals for a portfolio of industrial real estate comprised of 30 buildings located in seven states and the acquisition of three multi-family properties in Texas and Georgia. 

It is anticipated that the latest acquisition will provide an average annual cash yield in excess of 8.5 percent and an IRR of 10 percent for GFH and its clients.

GFH added that it expects the deal to reflect positively on its financial results in the second quarter of 2016.

GFH reported $6.1 million in net profit in the first quarter of 2016, a 176 percent rise from the $2.2 million recorded in the same period last year.

The firm’s combined profit for the quarter increased by 66 percent from $6 million last year to $10 million this year.

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