GFH Financial Group has recently announced the conclusion of the $123 million off-market sale of Accolade Park by its subsidiary, Roebuck Asset Management, to Tritax Big Box REIT Plc.
Accolade Park is a UK-based prime logistics center of 875,000 sq. ft. in Avonmouth, which is the principal logistics & manufacturing area for the South West region, centered around the Port of Bristol. The latest deal marks the end of the hold period for Roebuck, who took over the assets at $84 million on behalf of a consortium consisting of institutional investors in Korea in May 2017. Its significant value and robust income have provided a post-tax IRR of more than 20% as well as the target business plan.
Roebuck, during the hold period, had entered several acquisition deals with Korean and other Asian institutional investors of mission-critical logistics assets in Europe. For instance, the company and investors acquired the Avonmouth Distribution Centre of Tesco for $102 million in the UK.
Roebuck Asset Management’s Board Member & GFH’s Co-Chief Investment Officer, Mr. Nael Mustafa is excited about the recent crucial exit of a prime logistics asset by Roebuck. He stated that the strategy to sell Accolade Park and solid returns on this sale are indicative of Roebuck’s strength, adding high expertise to its European commercial real estate offering.
Furthermore, it is targeting to sign new deals in this space as well as offer investors with the opportunity to gain benefits from positive trends in the European and UK logistics, a market segment that has been witnessing solid fundamentals & continued prospects for growth.
According to Nick Rhodes, Co-founder of Roebuck Asset Management, the company’s investment in Accolade Park has performed well over the investment term, significantly delivering above its anticipated investment returns. It is planning to build on the recent critical milestone and extensive track record to unveil its 1st fund in the European logistics space by the end of 2021.