KAMCO ac­quires GE Global Op­er­a­tion Cen­ter in US

Kuwait Times - - BUSINESS -

KAMCO In­vest­ment Com­pany, a lead­ing in­vest­ment com­pany with one of the largest AUMs in the GCC re­gion, suc­cess­fully ac­quired General Elec­tric’s (GE) Global Op­er­a­tion Cen­ter build­ing lo­cated in the United States of Amer­ica. KAMCO, es­tab­lished in the heart of Kuwait City with an in­ter­na­tional of­fice in the UAE, an­nounced that the 12-story of­fice tower hous­ing GE’s Global Op­er­a­tion Cen­ter, lo­cated within The Banks “Work, Live, Play” mixed-use de­vel­op­ment area in down­town Cincin­nati, Ohio is cat­e­go­rized as a Class A tro­phy prop­erty.

The strate­gic lo­ca­tion pro­vides re­turns ex­pected to de­liver a 6.5% per an­num net yield to in­vestors and a pro­jected net IRR of 7.1% af­ter a to­tal in­vest­ment pe­riod of 5 years. The newly built-to-suit state of the art fa­cil­ity is equipped with the lat­est build­ing tech­niques and nec­es­sary in­fra­struc­ture to ac­com­mo­date a large num­ber of of­fices, and con­sists of 339,678 sq feet of us­able com­mer­cial space. The prop­erty, leased to GE on a triple net 15year lease, started from Oc­to­ber 2016 un­til 2031 with five ad­di­tional terms of 5 years with each op­tion ex­tended.

Com­ment­ing on the ac­qui­si­tion, Chief Ex­ec­u­tive Of­fi­cer of KAMCO, Faisal Man­sour Sarkhou, said that the ac­qui­si­tion was yet an­other land­mark in KAMCO’s ex­pan­sion plan that the Firm im­ple­mented dur­ing the be­gin­ning of 2016. He also af­firmed KAMCO’s strate­gic fo­cus on the re­gional and in­ter­na­tional real es­tate in­vest­ments across the iden­ti­fied core markets that pro­vide sus­tain­able re­turns to the Firm’s share­hold­ers.

Also com­ment­ing on the ac­qui­si­tion, Chief In­vest­ment Of­fi­cer of KAMCO, Khaled Fouad, said, “This in­vest­ment op­por­tu­nity em­pha­sizes KAMCO’s on­go­ing de­ter­mi­na­tion in pro­vid­ing new di­verse and in­no­va­tive in­come gen­er­at­ing as­set streams, and we be­lieve that this prime as­set of­fers long-term value in com­bi­na­tion with at­trac­tive cur­rent yields.” Fouad also added that the Al­ter­na­tive In­vest­ments De­part­ment at KAMCO is keen to re­sume de­vel­op­ing and ex­pand­ing its renowned track-record of ex­pe­ri­ence in dif­fer­ent al­ter­na­tive as­set classes on a lo­cal, re­gional and global ba­sis.

The in­vest­ment trans­ac­tion was or­ches­trated by the At­lanta of­fice of East­dil Se­cured, act­ing on be­half of Carter and 90 North Real Es­tate Part­ners act­ing on be­half of KAMCO. JLL Cap­i­tal Markets Debt & Eq­uity team, based in Chicago, co­or­di­nated the fi­nanc­ing, on be­half of KAMCO, with Des Moines, Iowa based Prin­ci­pal Real Es­tate In­vestors. The lo­cal Cincin­nati of­fice of CBRE, led by Steven Thorn­ton, will pro­vide prop­erty man­age­ment on the as­set.

As­sist­ing KAMCO in com­plet­ing the trans­ac­tion, Ice Miller LLP acted as le­gal ad­vi­sors for all prac­tices in the United States.. Ernest and young pro­vided tax ad­vi­sory ser­vices for the ac­qui­si­tion, while BDO USA LLP, Cen­trum In­vest­ment Group, and Jones Lang LaSalle fi­nan­cial and pro­fes­sional ser­vices firm spe­cial­iz­ing in com­mer­cial real es­tate ser­vices, as­sisted in com­plet­ing the trans­ac­tion. GE is a global digital in­dus­trial com­pany that is ranked 8th in the For­tune 500 with in­vest­ment grade rat­ings from Stan­dard and Poor’s (AA+) and Moody’s (A1). The com­pany’s di­ver­si­fied stream of in­come from its clients in over 180 coun­tries has led GE to reach a mar­ket cap of ap­prox­i­mately USD 296.5 bil­lion.

Strate­gic Lo­ca­tion

The real es­tate prop­erty ac­quired by KAMCO is lo­cated in the vi­tal area of Cincin­nati, Ohio called “The Banks”. The Banks is vi­brant, mixed-use de­vel­op­ment on the banks of the Ohio River. The ideal lo­ca­tion con­sists a com­bi­na­tion of res­i­den­tial real es­tate, en­ter­tain­ment venues, re­tail stores, of­fices and na­tional parks. It is also si­t­u­ated be­tween the Cincin­nati Reds’ baseball sta­dium, the Great Amer­i­can Ball Park and the Paul Brown Sta­dium. The de­vel­op­ment has also trans­formed down­town Cincin­nati’s river­front to a true live-work-play en­vi­ron­ment.

When fully com­pleted, The Banks will fea­ture 1,800 res­i­den­tial units, 400 ho­tel rooms, 1 mil­lion square feet of of­fice space and 400,000 square feet of re­tail space. The 592 res­i­den­tial units have been com­pleted to date, along with over 100,000 square feet of re­tail. The lo­ca­tion has mul­ti­ple bus and shut­tle ser­vices and a new bike-shar­ing pro­gram, Cincy Red Bike, with re­cently in­stalled sta­tions across the down­town Cincin­nati area pro­vid­ing over 260 bi­cy­cles for pub­lic use. The new $112 mil­lion, 3.6-mile street­car track will link The Banks to Down­town and even­tu­ally to the University of Cincin­nati. The ameni­ties The Banks has to of­fer al­lows GE to ac­cess a broader and wider pool of qual­ity staff, in a mod­ern work­ing en­vi­ron­ment while en­cour­ag­ing a work- life bal­ance.

Chief In­vest­ment Of­fi­cer at KAMCO Khaled Fouad

KAMCO’s CEO Faisal Sarkhou

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