Saudi investor exits first UK real estate investment
Jeddah, March 17, 2014
Saudi-based Sidra Capital said it has successfully advised a Saudi cornerstone investor in Blueberry Holdings, an special purpose vehicle which owned Rolls Royce manufacturing & distribution facility in Glasgow to exit his investment.
The long leasehold interest in the property was purchased by EPIC (UK) for £55 million ($91.5 million) which reflects a 6 per cent initial yield raising to 6.4 per cent in March 2018 and 6.9 per cent in March 2023 respectively, said the transaction adviser.
The 541,000 sq ft purpose built warehouse sits next to Glasgow Airport and the M8 Motorway and the existing lease to Rolls Royce has over 14 years remaining until March 30, 2028 at a gross rental of £3,481,620.
It currently house Rolls Royce’s aircraft engine manufacturing and distribution facility.
On the transaction, Hani Baothman, the CEO of Sidra Capital, said: "Over an investment period of three years, we have managed to secure for our investor a return on his investment of approximately 30 per cent cash on cash and an internal rate of return in excess of 10 per cent, both of which were in line with our investment target."
"The timing of the exit was planned and the offer we received from EPIC (UK) was both credible and attractive. We are very pleased to have been able to deliver such attractive returns to our investor," he added. -TradeArabia News Service