Mubasher: Kamco Invest has successfully exited from the asset under management (AUM), Abbott Laboratories Nutritional Headquarters in the US city of Columbus, Ohio, generating a total return on investment (ROI) for its investors, exceeding the targeted internal rate of return (IRR).
Kamco achieved a total ROI of 22.8% during the investment period at an internal rate of return of 8.2%, including a cash yield of 7.5% per year, which was distributed on a quarterly basis. The exit proceeds were distributed to investors on 6 April 2020, according to a press release on Tuesday.
The property, taken over in 2017, serves as the headquarters for Abbott Laboratories, a Fortune 500 company and one of the world’s largest diversified healthcare companies with a footprint in 150 countries.
It features office space of 215,038 square feet across four floors on an 808,909 square-feet-site, including 1,075 parking spaces and outdoor amenity space.
Commenting on the exit, executive director of Real Estate Investments at Kamco Invest, Mohammad Al Othman, said, “The exit was just ahead of the second quarter (Q2 2020) business plan expiration as set forth at the investment date, hence strongly confirming the solid real estate investment strategy particularly amid the uncertain market conditions revolving around COVID-19 and its implications on local and international markets.”
“We continuously explore the new acquisition of Class A commercial property with strong and sustainable cash flows from credit tenants leveraging on our expertise, reach, and full-cycle track record,” he concluded.
It is worth noting that Kamco Invest manages currently 12 Grade “A” international commercial properties in the US, the UK, and Europe and leased to tenants with robust financial positions and high cash. Those properties are valued at $1.18 billion and generate an average annual cash yield of 7.8%.
