Bahrain-based GFH Financial Group on Wednesday announced its successful investment in a portfolio of logistics assets leased to Amazon in the United States.
In a transaction currently valued at more than $2 billion, the portfolio, comprised of 14 mission-critical logistics assets strategically located in 11 states, is fully leased on a long-term basis to the global e-commerce giant.
Bahrain’s GFH buys US property in $90m deal
GFH acquired the 17-storey property in a Sharia-compliant joint venture with Broadshore Capital Partners
Totalling more than 11 million sq ft of prime space, the investment sees GFH expand its portfolio of logistics assets in the US.
GFH said its investment drive is based on long-term fundamentals supported by the continued growth of e-commerce, evolution of supply chain logistics and inadequate supply with construction unable to meet the current or projected requirements of the industry.
Demand for warehousing space outstripped new supply by 41 million sq ft in Q3 as e-commerce continues to grow in the post-pandemic era.
Contributing factors include the impact of increased volumes in ports across the US stemming from the post-pandemic rise in demand for all goods, the effect of the Panama Canal expansion on shipping volumes to the eastern ports of the US, along with the continued push by e-commerce players to shorten delivery times.
This has led to signficantly higher demand for warehousing space, which has grown by over 135 percent compared to the same period last year.
The assets are located near major ports and critical infrastructure, minimising inbound ground transportation expenses and providing for significant national reach to a majority of the US market.
The investment by GFH was made in partnership with Preylock Holdings, alongside a club of highly reputable multi-national institutional investment firms.
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Based in Los Angeles, Preylock Holdings is an owner, manager, and developer with total assets under management of more than $4 billion across 13 million sq ft of office and industrial investments.
Nael Mustafa, co-chief investment officer – Real Estate at GFH, said: “We’re excited to announce another major investment in the US logistic sector, which continues to go from strength to strength and is projected to continue its positive momentum in the near term due to economic growth in the US and the increasing demand for logistics and warehouse assets.”
Over the past 12 months, GFH said it has built a portfolio currently valued at more than $1 billion in the US and European logistics sectors.