GFH subsidiary to buy $65 mln real estate portfolio in US

GFH Capital Limited, a subsidiary of Bahrain-based GFH Financial Group, has signed an agreement to acquire an industrial real estate portfolio in the US for an approximate value of $65 million, the parent firm said in a statement to Dubai bourse on Sunday.

The portfolio – which comprises distribution, warehousing and industrial properties spread across the Midwest region of the US – is expected to provide a regular cash flow stream resulting from long leases and strong tenant base in the properties.

“It is anticipated that this new 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,” the statement added.

This is the third project by GFH in the US. It follows the acquisition of industrial real estate comprising 30 buildings across seven states and the acquisition of three multi-family properties in Texas and Georgia, which the financial firm closed over past 18 months.

GFH said it expects the deal to reflect positively on its 2016 second quarter financial results.

The company stock was down 0.6 percent to AED 0.86 within first 20 minutes of markets opening on Sunday.