MANAMA, BAHRAIN: GFH’s UK subsidiary, Roebuck Asset Management has concluded an off-market sale of a Tesco Distribution Centre in extra of $135 million.
The 540,000 sq ft temperature managed centre was initially developed by Tesco in 2010. The warehouse serves in extra of 4 hundred supermarkets and convivence shops throughout the South West of England and South Wales forming a essential a half of Tesco’s distribution network.
The sale marks the finish of an extraordinarily profitable maintain interval for Roebuck, who acquired the asset for $94 million in October 2017 on behalf of a consortium of institutional Korean investors. The robust income and significant worth increase provided the investors with a post-tax internal rate of return (IRR) of greater than 16%, well in advance of the goal marketing technique for such a core asset.
The asset was the second acquisition Roebuck made with South Korean investors and additionally with Capstone Asset Management. The sale of Tesco Avonmouth follows Roebuck’s 2021 sale of the Accolade Wines, Avonmouth Warehouse for $123m to Tritax Big Box REIT.
GFH acquired a majority stake in Roebuck, which continues to function independently, in December 2020 together with its investments in these strategic assets. Since GFH’s acquisition, Roebuck has considerably grown in phrases of team members and new offices, with extra being opened in London and Spain and plans for additional workplace openings over the subsequent 18 months.
With GFH’s backing and support, the intention is to proceed to develop assets under administration (AUM) and collectively as a group goal new acquisitions of c.$500m over the course of 2022. Roebuck is utilizing its native market experience and significant track record to set up new funding vehicles inside the Core + and Value Add space working with existing and new institutional investors.
Hugh Brown, Managing Partner at Roebuck, said: “The sale of Tesco Avonmouth has delivered our Korean investors significant out efficiency following a 4 and-half-year maintain interval producing total annual return in extra of 16%. It was fantastic to work with Capstone on one other profitable funding and the intention is to hopefully discover new projects to work on together. Roebuck is actively pursuing alternatives to recycle capital from these gross sales for both UK and European logistics assets.”
Mr. Nael Mustafa, Board Member at Roebuck Asset Management and Co- Chief Investment Officer at GFH, said: “We’re happy to announce this important exit by Roebuck of 1 of many prime logistics assets inside the portfolio. The technique to promote the Tesco distribution centre is in line with Roebuck’s plans to proceed to construct on its already very strong track record.
“The technique is in line with our recent mixed sale of the Amazon portfolio in Spain which generated similar returns over a shorter maintain period. While divesting from these assets reduces the immediate AUM, the pipeline recognized and secured throughout Europe will result in a net gain over the course of 2022. We look ahead to announcing new transactions with Roebuck inside the European logistics marketplace.”
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