Kuwait - Decypha: KAMCO Investment Company has announced its acquisition of Amazon UK Services Ltd’s largest distribution warehouse in the UK for GBP 61 million.
Based on the acquisition, KAMCO has become the sole owner of the property with an unexpired term of 15 years end in October 2031, the Kuwaiti company reported on Sunday.
KAMCO targets achieving cash yield of 6.5% per annum at an internal rate of return of 7% during the investment period.
Chief Investment Officer of KAMCO Khaled Fouad said that the transaction would diversify their sources of income, through which they target $0.5 billion, “this target is not far-off especially that KAMCO’s alternative investment team currently manages more than $250 million in real estate across 11 regional and international properties,” he said.
The deal was completed with the help of Rasmala Investment Bank; the investment advisor and Savillis Commercial Property Manager; the real estate and survey manager.
Both Trowels & Hamlins UK and Burness Paull Scotland acted as legal advisers, Ocorian as the offshore legal adviser, DekaBank Deutche Girozentrale as the main debt financier, JLL as the buy side broker and Earnest & Young as the primary tax advisers.
The property is located in Dunfermline, Scotland, with around 38% of the packages handled by Amazon per year.
Founded in 1998, KAMCO is a subsidiary of United Gulf Bank (UGB) and it has completed 92 investment banking transactions worth more than $13 billion as of 30 September 2016.
The Kuwait-based firm has an office in the UAE and it is regulated by the Capital Markets Authority.
By Decypha Editorial Team
