Building high income yielding real estate assets portfolio across multiple asset classes-
Dubai –16 April 2017 — GFH Capital, a subsidiary of Bahrain based GFH Financial Group, today announced the signing for a new investment in a US Virginia-based Data Center with market value exceeding US$100 million.
The investment is being undertaken in partnership with Corporate Office Properties Trust (COPT), a US$5 billion NYSE-listed REIT and one of the leading data center operators in the US. COPT, in addition to managing the assets, have also made a 20% investment in the portfolio, which is expected to provide investors with attractive semi-annual cash distributions at an annual rate averaging 9.5% over the investment period and an IRR of 12%.
The portfolio consists of two state-of-the-art, built-to-suit data center facilities located in high technology business parks in the US state of Virginia. The investment provides GFH and its investors with exposure to the positive dynamics of the US real estate market and, in particular, increasing demand for data centers in the US led by growth in cloud services and data storage needs with Virginia serving as top data center destination.
Commenting, Mr. Luay Ahmadi, Senior Executive Officer of GFH Capital, said, “We are delighted to announce another key investment in the US Real Estate market building on our growing portfolio and track record of success in this market. We are particularly pleased to be undertaking this investment with a world-class partner, COPT, which will ensure we maximise both returns and exit on this investment. The data center industry within the US real estate sector provides for further diversification and exposure for GFH and our investors and offers us the opportunity to leverage growth in this dynamic and fast growing technology driven segment. It is also an extension of our broader strategy to continue to acquire and bring to our investors unique and strong income yielding opportunities.”
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About GFH Capital Limited:
GFH Capital, a subsidiary for GFH Financial Group, is a Dubai based investment bank and fund manager, providing capital and strategic support for growth companies. With a 10-year track record of top-performing investments and fund management, GFH Capital is one of the region’s long best-established private equity firms and one of the first to be licensed by the Dubai Financial Services Authority.
GFH Capital has undertaken and structured investments of more than USD 3 billion in over 40 companies and across 25 countries. The company has managed healthcare, technology, media, telecommunications (TMT) funds and financial institutions and is a regional leader and is a regionally recognised participant in education Technology and Health Care investments.