GFH Financial Group (GFH) has sold a UK-based prime logistics park netting proceeds of $123 million.
The Bahrain-based Sharia-compliant investment firm announced its UK subsidiary Roebuck Asset Management has concluded an off-market sale of Accolade Park to Tritax Big Box REIT.
Comprising 875,000sqft, Accolade Park is located in Avonmouth which is the principal logistics and manufacturing area for the South West of the country, centred around the port of Bristol.
The sale marks the end of a successful hold period for Roebuck, who acquired the asset for $84m in May 2017 on behalf of a consortium of institutional Korean investors.
The robust income and significant value increase provided the investors with a post-tax internal rate of return (IRR) of +20 per cent, well in advance of the target business plan for such a core asset.
GFH acquired a majority stake in Roebuck, which continues to operate independently, in December 2020 including its investments in strategic assets.
Together, GFH and Roebuck are working on over €1 billion ($1.21bn) of new third party mandates.
Roebuck is using its local market expertise and significant track record to raise a European logistics focused fund to be launched later this year, which will be made available to the Roebuck and GFH investor base.
Commenting, Nael Mustafa, board member at Roebuck Asset Management and co-chief investment officer at GFH, said, “The strategy to sell Accolade Park is in line with the Roebuck’s plans. Mainly, to acquire core and core plus logistics assets, add value through execution of asset management initiatives and to exit within a medium term. The solid returns achieved on this sale are indicative of the strength of Roebuck and its team and exactly why GFH acquired the business in December 2020, adding significant expertise to our European commercial real estate offering. We look forward to announcing new transactions in this space and offering investors the opportunity to benefit from positive trends in the UK and European logistics, a segment of the market showing solid fundamentals and continued prospects for growth.”
