JLL advises Kamco Invest and Greenridge Investment Management on refinancing of two B&Q retail warehouse units in the UK
Transaction underlines investor appetite for stable and long-term rental income producing assets
LONDON, 14 December 2020 – JLL has advised Kamco Investment Company (“Kamco Invest”), a non-banking financial powerhouse headquartered in Kuwait, and Greenridge Investment Management (“Greenridge”), a Mayfair-based investment manager, on the £31 million refinancing of two long let B&Q retail warehouse facilities located in key UK regional towns and managed by Kamco Invest on behalf of investors. The Sharia compliant financing was provided by Abu Dhabi Islamic Bank (“ADIB”) using a Commodity Murabaha structure.
Both assets are let to DIY and home improvement company B&Q with a WAULT of over nine years and are located in the regional UK towns of Grimsby and Bury, totalling approximately 215,000 sq ft. B&Q is part of the wider Kingfisher Retail Group – a British multinational home improvement company listed on the London Stock Exchange and a member of the FTSE 100 Index.
JLL’s Debt & Structured Finance team who lead the refinancing included Senior Director Claudio V. Sgobba, Director Karan Mahajan, and Senior Analyst Hamish Gordon.
Mohammad F. Al Othman, Executive Director of Real Estate Investments, Kamco Invest, commented: “We’re excited to have secured refinancing for these high-quality retail warehouses on behalf of our investors. The assets were able to maximize their value throughout the pandemic by successfully adapting to the growing demand for online shopping and serving as collection centres for customers who made online purchases. They offer attractive rental performance and we’re confident will deliver long-term value creation.”
David Leong, Financial Director, Greenridge Investments, added: “Despite the headwinds during 2020, UK real estate continues to offer compelling investment opportunities. DIY and home improvement stores have seen a positive impact on trading performance and this transaction underlines our confidence in best-in-class, income producing assets. We’re pleased to have these B&Q retail warehouses in our portfolio.”
Paul Maisfield, Head of UK real Estate, Abu Dhabi Islamic Bank, commented: “ADIB are delighted to be partnering with Kamco Invest and Greenridge in refinancing this portfolio of strategically important B&Q assets. We hope to be able to further support Kamco Invest and Greenridge as they continue to identify compelling investment opportunities in the UK real estate market.”
Claudio Sgobba, Senior Director, Debt and Structured Finance, EMEA, JLL, said: “We’re delighted to have supported Kamco Invest and Greenridge on securing this refinancing solution. There is ample liquidity for top tier sponsorship with investments in high-quality retail assets. DIY and home improvement retailers have shown robust performance and resilience throughout the pandemic. This transaction further demonstrates the continued investor commitment to UK real estate and assets with strong lease fundamentals and long-term rental income characteristics.”
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of over 92,000 as of September 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.