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Sedco nets 11.24pc IRR from US real estate property exit

JEDDAH (Saudi Arabia), February 24, 2020

Sedco Capital, a leading global asset manager based in Jeddah, Saudi Arabia, has announced that it has successfully exited a US-based real estate investment after netting an IRR (Internal Rate of Return) of 11.24 per cent for investors.

Located at Fort Worth in Texas, the property, which boasts 170,000 sq ft of office and industrial space, was sold for $29.25 million last month. The prime property was acquired by Sedco Capital in 2001.

It is currently leased to Galderma Laboratories, a pharmaceutical manufacturer specialising in dermatological treatments and skin care products, formerly owned by Nestlé, said the statement from Sedco.

In addition to the successful sale of the Fort Worth asset, Sedco Capital has just concluded a $52.5 million real estate investment in Decatur, Atlanta in the US.

Willis Avondale Estates is a 197-unit premier mixed-use apartment community that was completed in 2018. The development contains 8,319 sq. ft. of retail space and benefits from close proximity to public transport, the downtown Atlanta metropolitan area, as well as healthcare and educational facilities.

It was acquired by Sedco Capital in partnership with Coastal Ridge Real Estate from South City Partners and ELV Associates.

On the key acquisition, CEO Samer Abu Aker said: "We are delighted by the ongoing success of our US investment strategy. The commercial real estate market in the country continues to benefit from robust economic activity, low interest rates, and strong fundamentals."

Sedco Capital currently manages assets in a diversified spectrum of investments in real estate, equities and other businesses with a total AUM (assets under management) of more than $5.3 billion.

Executive VP and Global Real Estate Head Sherif Selim said: "While this was the right time for us to exit the Fort Worth investment, as evidenced by the attractive rate of return, we believe the US real estate sector will remain an appealing asset class for the foreseeable future."

"Our acquisition in Georgia demonstrates our capability for identifying and securing significant developments with promising growth potential," he added.-TradeArabia News Service




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