GFH to buy $65m US realty portfolio

Dubai: GFH Financial Group (GFH) announced that its Dubai-based subsidiary GFH Capital Limited (GCL) has signed an agreement to acquire a portfolio of industrial real estate located in the United States for an approximate value of $65 million.

The portfolio, according to GFH, comprises of several distribution, warehousing and industrial properties spread across various states in the Midwest region of the United States. It is expected to provide a regular cash flow stream resulting from long leases and strong tenant base in the properties. Further, the portfolio is well diversified in terms of tenant base, location and individual properties strengthening the portfolio’s performance.

This new acquisition is considered the third project following the acquisition of a portfolio of industrial real estate comprised of approximately 30 buildings located in 7 States and the acquisition of three multifamily properties in Texas and Georgia, which GFH closed successfully over the last 18 months. It is anticipated that this new acquisition will provide an average annual cash yield in excess of 8.5% and an IRR of 10% for GFH and its clients.

GFH said it expects the deal to reflect positively on its financial results in Q2-2016.