GFH buys $2bn portfolio of Amazon logistics assets in US
MANAMA, November 3, 2021
GFH Financial Group has announced its successful investment in a portfolio of high quality, income yielding logistics assets leased to Amazon.
In a transaction currently valued at more than $2 billion, the portfolio, comprises 14 mission-critical logistics assets strategically located in 11 states, is fully leased on a long-term basis to the global e-commerce giant.
Totaling more than 11 million sq ft of prime space, the investment sees GFH expand its portfolio of logistics assets in the US.
GFH’s investment drive is based on long-term fundamentals supported by the continued growth of e-commerce, evolution of supply chain logistics and inadequate supply with construction unable to meet the current or projected requirements of the industry.
Demand for warehousing space has outstripped new supply by 41 million sq ft in Q3 2021 as e-commerce continues to grow in the post-pandemic era.
Contributing factors include the impact of increased volumes in ports across the US stemming from the post-pandemic rise in demand for all goods, the effect of the Panama Canal expansion on shipping volumes to the eastern ports of the US, along with the continued push by e-commerce players to shorten delivery times.
This has led to signficnatly higher idemand for warehousing space, which has grown by over 135% compared to the same period last year.
The assets in the new portfolio have been designed and built to suit Amazon’s requirements and are strategically located near major ports and critical infrastructure, minimizing inbound ground transportation expenses and providing for significant national reach to a majority of the US market.
The investment by GFH was made in partnership with Preylock Holdings, alongside a club of highly reputable multi-national institutional investment firms.
Based in Los Angeles, Preylock Holdings is an owner, manager, and developer with total assets under management of more than $4 billion across 13 million sq. ft. of office and industrial investments.
"We value our strategic relationship with such a reputable partner in GFH and look forward to continuing to execute on the logistics portfolio strategy," remarked Preylock CEO Brett Lipman.
"The strength of this asset class is unparalleled in US real estate and the Preylock portfolio is well positioned to deliver on that value," he added.
Nael Mustafa, Co-Chief Investment Officer – Real Estate at GFH, said: "We’re excited to announce another major investment in the US logistic sector, which continues to go from strength to strength and is projected to continue its positive momentum in the near term due to economic growth in the US and the increasing demand for logistics and warehouse assets."
"The 14 assets are strategically located, purpose-built and state-of-the-art, enabling Amazon to effectively streamline the flow and delivery of goods to its massive and ever-expanding customer base across the US," stated Mustafa.
