Qatar, Dubai consortium buy two UK logistics properties
The First Investor (TFI ), the investment banking division of Qatar’s Barwa Bank Group (BBG), and Dubai’s Investra Investments LLC acquired two properties in the United Kingdom for distribution and logistics purposes, it was announced this week.
The two purchases represent the first acquisition through a Shariah compliant light-industrial income generating fund, set-up by the two firms in April 2013.
TFI revealed through a statement that they had acquired a manufacturing warehouse located in Bilston, Wolverhampton, which is leased to a large manufacturer of highway and road railing and barriers, for an unexpired lease term of at least 10 years and a gross yield of 9.1%; and a distribution warehouse located near Glasgow in Scotland, which is leased to a large parcel distribution company in Europe, for an unexpired lease term of at least 11 years and a gross yield of 9.9%.
The UK distribution, logistics and light-industrial property sector has historically outperformed the office and retail sector in generating income yield over the past 30 years and we believe this is the right time to enter the market for three to five year investment horizon. I am confident that through TFI 's investment expertise and Investra’s specialised knowledge of the UK real estate market, we will be able to capitalize on this unique opportunity,” said Khalid Al Subeai, director of the TFI Investra UK Property Income Fund, and chief executive officer of TFI.
While Zaid Randeree, director of the TFI Investra UK Property Income Fund and managing director of Investra, said: “The strategy of the Fund is to build a diversified portfolio of well located properties sized between GBP 2 to 10 million pounds, with remaining lease terms of 8 years and yields of at least 8%, with single tenancies and tenants with strong covenants. We are pleased to have acquired the first two properties and are planning for two more acquisitions by August 2013."
The statement further revealed that TFI and Investra would be continuing their investment programme in the UK distribution, logistics and light-industrial sector until Q1, 2014.