KAMCO buys office tower in Cincinnati

KUWAIT: Kamco Investment Company has successfully acquired a prominent 12-storey office tower in Cincinnati, Ohio formerly owned by GE. The mixed-use development located in downtown Cincinnati is categorized as a Class A property.

The strategic location provides returns expected to deliver an approximate 6.5 percent yield every year and a projected net internal rate of return (IRR) of about 7.1 percent after a total investment period of five years.

The newly built-to-suit facility is equipped with the latest building accessories and necessary infrastructure to accommodate a large number of offices, and consists of 31,557m2 of usable commercial space.

The property, leased to GE on a triple net 15-year lease, starts from October 2016 until 2031 with five additional terms of five years with each option extended.

Commenting on the deal, chief executive Faisal Mansour Sarkhou, said: “The acquisition was yet another landmark in Kamco’s expansion plan implemented during the beginning of 2016. Our strategic focus on the regional and international real estate investments across the identified core markets will provide sustainable returns to the firm’s stakeholders.” Khaled Fouad, the chief investment officer, said: “This investment opportunity emphasizes Kamco’s ongoing determination in providing new diverse and innovative income generating asset streams. Ee believe that this prime asset offers long-term value in combination with attractive current yields.

“The Alternative Investments Department at Kamco is keen to resume developing and expanding its renowned track-record in different alternative asset classes on a local, regional and global basis.”

The transaction was orchestrated by the Atlanta office of Eastdil Secured, acting on behalf of Carter and 90 North Real Estate Partners for Kamco. JLL Capital Markets Debt & Equity team, based in Chicago, co-ordinated 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, provided property management on the asset. Assisting Kamco in completing the transaction, Ice Miller acted as legal advisors for all practices in the US. Ernst & Young provided tax advisory services for the acquisition, while BDO USA, Centrum Investment Group, and JLL assisted in completing the transaction.