Kuwait Finance House, an investment firm from Kuwait, announced that it acquired a warehouse property for logistic services in Sweden for $70 million.
Hallsberg, the city where the property situated, is considered a logistic services hub for the local and international companies for supplying the main Swedish cities and an exporting center to the neighboring Nordic countries. The property with a built up area of 70,000 square meters is leased to Ahsell, a trading and distributing equipments firm, for a long term lease contract.
Kuwait Finance House is listed in the Middle East Investors Directory with the code LIP07.
More details follows
The International Real Estate Department Manager of Kuwait Finance House (KFH) Ali Al-Ghannam announced that KFH acquired a warehouse property for logistic services in Sweden for $70m.
Hallsberg, the city where the property situated, is considered a logistic services hub for the local and international companies for supplying the main Swedish cities and an exporting center to the neighboring Nordic countries. The property with a built up area of 70,000 square meters is a high quality asset leased to Ahlsell for a long term lease contract generating stable and good cash flow income stream. Ahsell, is a leading company in trading and distributing light equipments and electrical appliances since 1877.
The company's rating is 5A1 by the international credit rating agency Duns and Bradstreet. It is worth noting that the company's revenues reached $2.7bn in 2010 , alone .
Al-Ghannam mentioned that the recent acquisition will be an added value for KFH's Pan European real estate portfolio.
Sweden is also considered to be one of the major real estate markets in northern Europe and ranks fourth worldwide in terms of economic competitiveness and solidity. He went on that KFH's real estate portfolio is well spread amongst various strategic cities in several European countries with robust economies in order to minimize and diversify its investment risks and flourish the invested capital. He added that last year, KFH acquired an office building in the Netherlands leased to Ernst & Young for 15 years.
Furthermore, he stated that this deal is considered KFH's second investment entry in Sweden after its well-known successful investment in the so-called the Swedish Post Office Terminals portfolio back in year 2002 for approximately $432m that consisted 14 postal distribution centers extended over numerous cities and towns in Sweden with total built up area of 395,000 square meters. The portfolio was later sold in early year 2007 with impressive high capital returns.
He added that the impact of the global financial crisis was mild on such core assets as they usually stand stable against market's turbulences. He went on to say that KFH will consider further investment opportunities in various international real estate markets in collaboration with their reputable and experienced asset managers, such as, Leimdorfer as it was recently awarded by Euromoney as the best M&A consultant in Sweden and Finland in year 2011.
The meeting was attended by Leimdorfer's firm: Peter Leimdorfer, Louis Richnau, and from KFH's international real estate team: Anwar Al-Yahya, Abdullah Al-Bader, and Abdullah Al-Ateeqi from KFH.
The Nordic countries are known for their strategic location for logistic transportations services for supplying the rest of the northern European countries, the Baltic Region, and Russia. In addition, Sweden is known to be the third best logistic location in the world, supporting its economy and real estate market. Sweden's credit rating is AAA/A-1+ (with a stable outlook) by Standard & Poors.
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