GFH Partners Ltd, GFH Financial Group’s global asset management arm, has created and completed its eighth logistics and industrial fund in the United States, the Dubai Financial Markets-listed company stated Monday. Valued at $300 million, the fund encompasses 25 industrial and transportation logistics assets across seven US locations, according to a DFM filing.
The portfolio features six newly built Class A properties with tenants such as Tesla, Teleflex, Tower Health, and UGO Energy Services. These assets are diversified in terms of location, space usage, and tenant base, boasting long lease terms and investment-grade occupants.
GFH Partners Ltd noted that the industrial real estate sector in the US has demonstrated resilience during challenging times, including the pandemic and periods of high inflation and interest rates. This resilience is bolstered by strong demand from e-commerce, manufacturing, and the nearshoring and offshoring of various production facilities to North America.
The fund’s transportation logistics assets include around 20 small to medium sites used for truck parking and servicing, sorting and fulfillment of goods, electric vehicle battery charging, loading and unloading, and transportation worker facilities. These assets are fully occupied and span 600,000 square feet of rentable area leased to SRS Distribution, Steiner, AT&T, and Penske.
“Interest in this asset class is expanding due to limited availability, rigorous zoning regulations, and declining supply, which is being driven by rising demand from trucker, bus, and other mass transportation operators. Furthermore, the assets purchased by the fund capitalize on the resurgence of the Midwest logistical spine, which connects Chicago to Texas and the southern US border.
Demand in these markets is also supported by the onshoring and reshoring of several manufacturing and warehousing activities in Mexico,” the company stated in its DFM filing.
To manage these assets, GFH Partners has partnered with Transport Properties, an investment manager specializing in the development and enhancement of properties for trucks, buses, construction, and material storage. Transport Properties boasts a portfolio of more than 45 properties across 605 acres of land, managing each step in-house by controlling the entire process.
Nael Mustafa, CEO of GFH Partners, said, “The successful launch and closing of this fund is another important milestone for GFH Partners, capitalizing on our ability to secure off-market transactions that offer our investors unique risk-return profiles. This further builds on our existing platform and capabilities.”
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