Global Investment House buys up UK warehouses
Investment firm keen to pursue more opportunities in British property market
Global Investment House, a Kuwait-based asset management and investment banking firm, said that it acquired two institutional grade warehouses in the UK town of Bury in the greater Manchester area and the seaport town of Grimsby, both in northern England.
Both UK properties are being rented out to B&Q, a major British DIY retailer, under a 12-year lease and the purchase is expected to give the investment firm net annualised dividends of more than 8 per cent with annual growth potential of between 2 per cent to 3 per cent. The cost of the acquisitions was not disclosed.
"This acquisition affirms our strategy to diversify our portfolio and demonstrates our continued pursuit of identifying value growth prospects in other sectors within the greater UK property market," said Nasser Al Khaled, the head of real estate asset management at Global.
"We see great opportunity in the retail warehousing sector due to its resilience to the rise of the ecommerce industry."
The investment, which is being structured to provide Global's clients with Sharia-compliance, is the sixth under Global's UK national commercial real estate programme in partnership with the London-based Greenridge Investment Management. The programme was launched in September 2015 to identify opportunities in regional UK cities which produces rental income from investment grade or government tenants in long-term leases.
Updated: September 10, 2017 06:43 PM