Home » Dubai Investors »


|| Middle East investors acquired Amazon’s largest UK distribution warehouse for $76 million

amzn-uk-dubai-investorsDubai investment bank Rasmala and Kuwaiti investment firm KAMCO acquired Amazon’s largest UK distribution warehouse for $76 million.

The acquired property is leased to Amazon UK Services with an unexpired term of 15 years. The investment will target an annual cash dividend yield of 6.5% per annum, with an expected internal rate of return of 7% upon exit.

Kamco and Rasmala are listed in the Middle East Investors Directory with the code OR35 and OR48 respectively.

More details follows:

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.

-------

KAMCO Investment Company and Rasmala have acquired Amazon UK Services Ltd.’s largest distribution warehouse for approximately GBP61 million, inclusive of fees.

The acquired property is leased to Amazon UK Services Ltd. with an unexpired term of 15 years expiring in October 2031. The investment will target an annual cash dividend yield of 6.5% per annum, with an expected internal rate of return of 7% upon exit.

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. Zak Hydari, Group Chief Executive of Rasmala, said, “We are delighted to partner with KAMCO on this landmark transaction. Rasmala has extensive experience in acquiring and managing UK real estate in partnership with Gulf based investors. We look forward to working with KAMCO to support their expansion plans.”

The property was purpose-built for Amazon’s services due to its strategic location and proximity to the main transport networks, Edinburgh and Edinburgh Airport, which offers easy access to neighbouring Scottish cities.

The property, which extends over an area of more than one million square feet, is fully automated with conveyor belts moving packages from order receipt to fulfilment to packaging and finally the loading bays. The warehouse also features a 24-hour security system. (c) Companies press release



Previous Post: Dubai private equity firm invested $50 million in South American home designer
Next Post: Gulf Capital acquired majority stake in e-commerce platform Sporter



|| About Us

Established in 2007, DubaiBeat.com provides insight, analysis and research on Middle East investors.

We cover different asset class investors like private equity, venture capital, hedge funds and real estate investors from the Middle East and broader MENA region.


|| Subscribe












Copyright 2007-2017 DubaiBeat.com    Sitemap  |  Terms  |  Privacy Policy

Follow us: RSS Feed   Facebook    Twitter