KAMCO Investment Company, a leading investment company with one of the largest AUMs in the region, acquires Amazon UK Services Ltd.’s largest distribution warehouse for approximately GBP61 million, inclusive of fees.
KAMCO announced that the acquired property is leased to Amazon UK Services Ltd. with an unexpired term of 15 years expiring in October 2031. Through this acquisition, KAMCO has a controlling stake in the property. KAMCO aims to achieve a targeted cash yield of 6.50% per annum, at an expected IRR of 7% per annum during the investment period.
Commenting on the acquisition, Mr. Faisal Sarkhou, Chief Executive Officer of KAMCO, said, “This achievement marks yet another step towards reaching our strategic objectives and future vision to enhance our operational performance and expand our real estate investments platform on a regional and international scale, in a way that is beneficial to our shareholders.”
KAMCO’s Chief Investment Officer, Mr. Khaled Fouad, said, “This transaction highlights the acquisition of a new category of income-generating assets that are leased to quality covenants such as Amazon, with the aim of diversifying sources of income.” He added that, “Reaching a target of half a billion dollars is not far off given that KAMCO’s alternative investment team currently manages more than USD250 million in real estate across 11 regional and international properties.”
Mr. Fouad reiterated that the successful completion of the acquisition would have not been possible without the combined efforts of advisers led by Rasmala Investment Bank Ltd. as the investment advisor, Savills Commercial Property Management as the property manager and surveyor, Trowers & Hamlins LLP, UK, as English counsel and Burness Paull LLP (Scotland) as Scottish counsel. In addition, Bedell Cristin acted as offshore legal adviser (Jersey) and Ocorian Fund Services (Jersey) Limited acted as the offshore administrator (Jersey), DekaBank Deutche Girozentrale as senior debt financier, Jones Lang LaSalle as buy-side broker, and finally Ernst & Young as primary tax advisers.