Kamco Invest, the Kuwaiti-based firm that manages investments on behalf of Middle Eastern investors, has joined forces with M7 Real Estate to acquire three office buildings in three separate transactions across regional UK cities.
The transactions worth a total of £62.5 mln (€72 mln) are supported by Aviva Investors, who have provided a newly originated senior debt facility towards the purchase of the office assets.
‘A first for Aviva Investors Real Estate Debt, this transaction was structured to be partly fixed and partly floating with the latter portion aligned to SONIA to ensure the optimal outcome for both the borrower and investors of the loan. This transaction further demonstrates our commitment to strong sponsors and the belief that good opportunities continue to exist in the market,’ commented Gregor Bamert, head of real estate debt at Aviva Investors.
The portfolio comprises three high specification office properties in three major submarkets (Maidenhead, Cardiff and Bristol). The properties, which extend over a total of 214,000 sq ft (19,900 m2), are fully occupied by a number of investment-grade tenants including SAP, Atradius and TSB, with an average unexpired lease term of 6.5 years. The investments will target a high single digit annual cash dividend.
Commenting on the acquisitions, Mohammad Al Othman, executive director of Real Estate at Kamco Invest, said: ‘We continue to advise and assist our regional group entities on real estate transactions and diversify the Group‘s portfolio by investing in high-quality, well-located office spaces throughout the UK. Each of the properties within this package of deals include existing investment-grade tenants, providing a secure, long-term income stream for our investors.
Kamco is prepared to branch out its real estate investing activities towards the Netherlands and the Nordic region, CEO Al Othman recently said.
Speaking in a seminar hosted by UK investment partner, M7 Real Estate, the Middle Eastern asset manager said that as well as making ‘follow- ons’ from transactions in the UK, Kamco was also ‘looking at other countries, specifically the Netherlands and Nordics’. He added: ‘We continue to find interesting opportunities.’
Kamco began its foray into international real estate from 2015 onwards, focusing on the largest markets in the world in the US, the UK, and Continental Europe - mainly Germany.
