Islamic Finance 

SEDCO Capital completes $338m of real estate exits in the U.S. and UK generating strong IRR for investors

| 13 August, 2019

Jeddah, Saudi Arabia, August 12, 2019: SEDCO Capital, a leading global asset manager, is pleased to announce that it has exited seven global real estate investments for a total of $338m, achieving target returns on all properties and realising an average internal rate of return (IRR) of 14 per cent.

The seven properties span the residential, hotel, office, healthcare and logistics sectors in the United States and the United Kingdom and all were acquired between 2012 and 2016.

SEDCO Capital sold the Hampton Inn Hotel in Nashville for $103.5m, representing an equity multiple of 2.2x and an IRR of 33.2 per cent. The investment was acquired at the start of 2016 and was part of SEDCO Capital’s Value Add portfolio which focuses on buy, fix and sell.

Another standout investment was the sale of an Amazon data center in San Francisco for $35m which generated an IRR of 19 per cent and an equity multiple of 1.13x

Garrett West and Catalyst, two residential assets in the US, were sold for a total of $94.5m generating an IRR of 8 per cent and an aggregate equity multiple of 1.13x for investors. A medical property, also in the US, was divested for $28.4m and generated an IRR of 11 per cent.

A 99,000 sq. ft portfolio of six veterinary medical facilities across the US sold for $46m and generated an IRR of circa 12 per cent. An office building in the UK which was purchased in 2015 sold for £24m and generated a solid 7 per cent IRR.

Sherif Selim, Head of International & Regional Real Estate at SEDCO Capital, added: “We are delighted with our success in the US and UK markets which underscores our global positioning as a serious investor across value add and core strategies.”

“We have seen excellent returns in both territories and will continue to pursue attractive opportunities for our investors albeit with a focus more on urban traditional assets with an emphasis on total return primarily from solid income,” he added.

SEDCO Capital, which is seeing strong investor appetite for portfolio diversification and exposure to mature markets, manages real estate assets totaling over $1.2bn across the US, Asia, MENA and Europe. Most recently in May, the asset manager completed the $37.25m acquisition of a 96,535 sq. ft state-of-the-art R&D facility in California, in partnership with Madison Marquette.

Assets under management in SEDCO Capital’s commercial real estate portfolios span the retail, office, multifamily, senior living, industrial and healthcare sectors. Primarily focused on developed markets, SEDCO Capital selects properties using three strategies, including core assets, core markets and opportunistic investing. The firm takes an active management approach to its investments by capitalising on its international presence.