GFH to acquire US$ 125 million industrial real estate portfolio in the United States

GFH Capital, the subsidiary of GFH Financial Group, today announced that it has agreed to acquire an Industrial Real Estate portfolio in the United States in a deal worth US$125m.

The portfolio includes 18 income producing assets diversified across six states with an overall occupancy rate of 98%.

The portfolio has a balanced mix of tenants and the properties either have single-tenants or multi-tenants further ensuring the stability of cash flows and a higher upside potential. It is expected for the portfolio to return an average cash-on-cash yield of 8.5% and an Internal Rate of Return of 10%.

Commenting, Mr. Hisham Alrayes, Managing Director of GFH Capital, said, “We are delighted to announce another acquisition in the US real estate market, the second completed by the Group over the past 12 months. The real estate sector in the US has attractive dynamics and our investments there have already delivered strong returns and dividends to investors. With this transaction, we are creating another compelling opportunity for the Group and our investors who are seeking strong, steady cash yields, potential for capital appreciation and effective portfolio diversification.”