Manama: GFH Financial Group (GFH) has announced the acquisition of a US-based warehousing and distribution logistics facility situated in Ohio and fully leased to FedEx Inc. in a transaction valued at approximately US$100 million.
This is part of GFH’s logistics and industrial sector investment theme, focusing on the acquisition of high quality logistics assets in key distribution hubs to capitalize on the strong tailwinds from growing e-commerce penetration rates and sales.
GFH is a global real estate investor, investing across sectors with strong long-term fundamentals. It currently has in excess of US$12 billion of assets under management.
GFH continues to scale up its global logistics platform with its recent acquisitions of the Amazon Spain Portfolio, the Michelin distribution facility in Chicago and the current FedEx distribution facility transaction. This will gain exposure to well positioned top credit tenants occupying a variety of mission critical facilities in key locations in North America and Europe.
As the world’s second largest courier and delivery service provider, FedEx benefits from the increased e-commerce demand from a multitude of players and sources. The growth of e-commerce is significant across the North American landscape and therefore, fueling increasing demand from logistics players such as FedEx to be located in central and strategic hubs to satisfy demand. The FedEx facility has a unique location with scarce comparable supply in the surrounding area, making it attractive to blue chip tenants and an attractive investment for GFH. It is located in a primary logistics hub in the state of Ohio and a city that is considered as one of the fastest growing metro centres in the nation, providing access to over 60% of the US population in just one day’s drive. Due to its strategic position, it is a mission-critical facility for FedEx and the company’s growing national ground delivery business.
“We’re delighted to announce another strategic acquisition of a prime, income yielding real estate asset in the US logistics and distribution sector. The logistics and distribution real estate sector has proven to be one of the most dynamic sectors of commercial real estate. An increase in global trade and E- commerce, as well as development in supply chain management, has created an increased structural demand for warehousing space, and hence further growth. As part of our investment strategy, we have been investing in this dynamic sector and building a solid and diversified portfolio,” Razi Al Merbati, Chief Executive Officer of GFH Capital KSA, said.
“We are excited to be able to secure another high-quality asset that has the location, tenant strength and physical attributes, which are highly sought after. We look forward to announcing several other transactions in the sector this year across North America and Europe, supported by our conviction in the ongoing growth of the logistics sector globally and the opportunities that it presents for GFH and our shareholders and investors,” Nael Mustafa, Co-CIO Real Estate at GFH, added.
