GFH Financial acquires distribution facility in Chicago
MANAMA: GFH Financial Group ( GFH) has announced the acquisition of a mission-critical distribution facility in Chicago, Illinois, which has been leased since November 2015 to blue chip tenant, Michelin North America (Michelin), the international, top selling tyre brand and global tyre industry innovator.
The transaction, valued at over c$135 million, marks the continued expansion of GFH’S global porfolio of income generating real estate assets including prime distribution centres; well positioned logistics assets and last mile delivery facilities in the US and Europe.
The transaction was undertaken in partnership with Silver Creek Commercial Development, a US based asset manager with a track record of over $2 billion in logistics transactions.
The facility is distinguished by its strategic location in the geographic centre of the United States. It is situated at the intersection of I-55 (Chicago to Louisiana) and I-80 ( New York to Northern California) offering seamless access to major interstate highways. The facility is one of only two bulk logistics centres used by Michelin in the US, handling 35 per cent of the company’s imported inventory and therefore siting at the heart of its US operations.
Its close proximity the BNSF Logistics Park Chicago, a transport hub linking manufacturers with rail, road and ocean links, and the UP Joliet Intermodal Facility. Respectively, these transport centres handle approximately six million TEUS annually, ranking third in the US by activity, lagging only behind the Ports of Los Angeles and Long Beach in terms of total US container volumes.
Commenting, Razi Al Merbati, CEO of GFH Capital, said, “With this transaction, we continue to further our efforts to diversify and expand our porfolio of international, blue chip real estate assets. This includes new acquisitions of prime properties in strategic geographies for us including the US. This is especially true in the distribution and logistics segment today, where demand is strong for well-located facilities close to major urban centres and populations that require faster and more seamless access to goods.
With this deal, we move further towards solidifying our position as a leading real estate investor in the US and look to transact on the strong pipeline of other unique opportunities we have in place.”
Salem Patel, Head of Asset Management, at GFH, added, “We’re extremely pleased to announce another strategic global acquisition in the logistics sector. The Chicago-based facility is uniquely positioned in the centre of the country and boasts seamless access to a variety of transport links giving tenants easy access to their customers located across major US states and commercial centres. This investment is supported by its long-term lease to Michelin, a highly reputable tenant and global tyre industry giant, who has helped establish and maintain the facility as a state-of-the-art distribution centre.”
“We are continuing to look at further investments in the sector globally and to maximise the value of this and our growing porfolio of logistics centres for the benefit of the Group, our shareholders, investors and partners.”
GFH is one of the most recognised financial groups in the Gulf region. Its businesses include Asset Management, Wealth Management, Commercial Banking and Real Estate Development. The Group’s operations are focused in the GCC, North Africa and India. GFH is listed in Bahrain
Bourse, Boursa Kuwait and Dubai Financial Market.
GFH Financial Group earlier announced its financial results for the fourth quarter and twelve months ended Dec.31 ( the year).
The Group reported net profit atributable to shareholders of $21.93 million for the fourth quarter of 2020 compared with $1.5 million in the fourth quarter of 2019, an increase of 1362 per cent.
Previous year fourth quarter results included a significant impairment provision in the commercial banking subsidiary of the Group. Earnings per share for fourth quarter of 2020 was US cents 0.65 compared to US cents 0.04 for the comparative quarter of 2019.
Consolidated net profit for the fourth quarter was $19.04 million compared with losses of $8.1 million in the fourth quarter of 2019
Net profit atributable to shareholders was $45.1 million for the full year compared with $66.03million in 2019, a decrease of 31.7 per cent. The decline is predominantly atributable to slower contribution from business lines as a result of the pandemic situation during the year. Earnings per share for the year was US cents 1.35 compared to US cents 1.96 for the full year 2019.
Consolidated net profit for the year was $49.34 million compared $53.12 million in 2019. Total equity atributable to shareholders was $0.913 billion from $1.00 billion at year-end 2019, a decrease of 8.7 per cent.
The drop was primarily due to the 2019 dividends payout, mark to market changes on treasury porfolio, and additional capital contribution to the Group’s commercial banking subsidiary.
Total assets of the Group were $6.59 billion at year-end 2020 compared with $5.95 billion at 31 December 2019, an increase of 10.8 per cent.
The group’s total assets and fund under Management ( AUM) increased from $10 billion in 2019 to over $12 billion in 2020, marking a year-on-year increase 20 per cent, primarily from the growth in the treasury porfolio of the Group along with inorganic growth through acquisition.
Total income for the fourth quarter was $109.29 million compared to $76.62 million for the fourth quarter of 2019, an increase of 42.6 per cent. This was achieved despite an impairment loss of $12 million from an equity investment. Total income for the year was $323.39 million versus $321.61 million in 2019, an increase of 0.6 per cent.