GFH Capital, the subsidiary of Dubai-based investment bank GFH Financial Group, said it has reached a $125 million deal to acquire an industrial real estate portfolio in the US.

The portfolio includes 18 income producing assets diversified across six states with an overall occupancy rate of 98 per cent, stated the company.

The portfolio has a balanced mix of tenants and the properties either have single-tenants or multi-tenants further ensuring the stability of cash flows and a higher upside potential.

It is expected for the portfolio to return an average cash-on-cash yield of 8.5 per cent and an internal rate of return of 10 per cent.

On the deal, Hisham Alrayes, the managing director of GFH Capital, said: "We are delighted to announce another acquisition in the US real estate market, the second completed by the group over the past 12 months."

"The real estate sector in the US has attractive dynamics and our investments there have already delivered strong returns and dividends to investors. With this transaction, we are creating another compelling opportunity for the group and our investors who are seeking strong, steady cash yields, potential for capital appreciation and effective portfolio diversification," he added.

One of the region’s key private equity firms, GFH Capital has a 10-year track record of top-performing investments and fund management. It is one of the first to be licensed by the Dubai Financial Services Authority.-TradeArabia News Service