Saudi group SEDCO exits ABC West in Frankfurt for 30% IRR
Global Shariah-compliant asset manager SEDCO Capital turned a decent profit when exiting its investment in ABC West, a multi-let office property in Frankfurt am Main recently.
The Jeddah, Saudi Arabia-based SEDCO sold the property for €52.9m, having paid €29.4m for the asset in 2017. ABC West is a 13,723 sqm of office space located in „City West” in Frankfurt with currently nine tenants, and consists of five separate buildings. and was managed by GLL Real Estate Partners GmbH. SEDCO said it realized an IRR of 30% for its investors.
The sale marks the 13th successful real estate divestments in the US, Europe and Asia over the last 20 years, covering the residential, hotel, office, healthcare and logistics sectors, returning an average IRR of 11.7%.
The exit was hailed by Sedco Capital’s chief executive Samer Abu Aker as “a testament of our ability to leverage our market expertise and strong network of international partners” enabling it to sell at a favourable price in challenging global market conditions. Aker also said that the firm would continue to “identify investment opportunities [in Europe] that fit within the framework of our ethical investment principles”.
With more than €485 million of investments made in European real estate, SEDCO Capital’s International Real Estate team currently manages a diverse portfolio of properties across the UK, Germany, France, and Italy.
The buyers of ABC West are KanAm Grund Group, for whom it is their ninth fund asset in southern Germany and brings their office share up to 53% of fund holdings, mainly in Frankfurt, Stuttgart and Munich. KanAm is buying ABC West for its institutional Fokus Süddeutschland Fund, in which principally local southern German banks and Sparkassen are invested.