GFH completes early exit of Amazon portfolio in Spain

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

GFH’s European subsidiary, Roebuck Asset Management, has successfully completed an exit from its Amazon Last Mile Logistics Warehouses Portfolio in Spain, the investment group announced yesterday. Acquired in 2020, the portfolio covers an area of approximately 140,000 square meters and comprises three strategically located, high-quality assets leased to Amazon Road transport Spain, S.L.U.

The last mile delivery facilities, spread across Murcia, Alicante and Valladolid, form a critical part of Amazon’s rapidly expanding Spanish logistics network.

Online sales accounted for unprecedented levels of total retail sales during the COVID-19 pandemic, spiking as high as a third in some European countries during lockdowns. The e-commerce market in Spain has grown to over Euro 5 billion, expanding by an average of over 13% annually for the past decade.

Amazon has invested nearly Euro 3 billion in Spain over the past decade and has seen its revenues quadruple in the past few years. A fact that fueled the need for last mile distribution assets that facilitate and reduce delivery times. During the holding period, Roebuck took an active asset management approach, overseeing the completion of the development and the takeover by the tenant, and actively sourcing a suitable buyer to secure the exit.

The portfolio’s exit reflects an overall return on investment (ROI) of 17%, matching what was initially targeted over a longer holding period. “Significant shifts in the e-commerce and Fast Moving Consumer Goods markets over the last two years have sparked increased demand for quality warehousing facilities across Europe. Leading distributors now rely on well located, modern facilities as part of their logistics networks.

This is an opportunity we have been swift to capitalise on,” said Hugh Macdonald-Brown, Managing Partner at Roebuck. Nael Mustafa, Co-Chief Investment Officer at GFH, said: “While we still believe in the overall fundamentals of investing in logistics assets, our investment in the Amazon Last Mile Logistics Warehouses Portfolio has delivered the target yield and the capital appreciation desired.

Amid favourable market conditions, we have decided to make a timely and profitable earlier exit to secure a strong return for investors.” The investment group focuses on defensive sectors and prime, income yielding real estate and logistics assets. However, GFH’s strategy is also underpinned by an opportunistic and agile outlook that aims to capitalise on market shifts.

The group has an ongoing strategy to diversify and expand its portfolio of international real estate assets. Mustafa added: “GFH remains committed to the strategy of sourcing and structuring robust real estate asset transactions in Europe and the US that provide stable returns in fundamentally sound sectors supported by long term trends. ”