Fujitsu acquisition boosts Gatehouse's £250m portfolio

Fujitsu acquisition boosts Gatehouse's £250m portfolio

• Gatehouse strategy on real income-producing assets is proven success
• Total value of real estate portfolio exceeds £250 million in 18 months

London, UK: Kuwaiti-owned Gatehouse Bank plc (Gatehouse), a wholesale Shariah compliant investment bank in the City of London has completed the acquisition of a 62,004 sq ft office building in Basingstoke, SE England, UK. The office building is let to IT services giant Fujitsu Services Limited for a 70 year unexpired term. Gatehouse continues to establish a proven track record of success, with its core investment strategy of securing low-risk, real income-producing assets with long-term cash flows. This most recent acquisition combined with Rolls-Royce facility in Glasgow in January, brings the total value of Gatehouse Bank’s real estate portfolio in excess of £250 million.

The property delivers a net initial yield of 6.25% with the length of the term secured by Basingstoke Council on a long leasehold with Fujitsu Services Limited. The property is also subject to upward rental reviews conducted on a five yearly basis, to make this a solid opportunity that is set to maximise both rental returns and increased capital values over the projected hold period of 3 years.

Fahed Boodai, Chairman of the Board of Directors at Gatehouse Bank commented,

“I am pleased to announce the recent acquisition of the Fujitsu Services property in Basingstoke on behalf of private clients. This deal is a unique transaction that creates a real investment advantage, with a superior “annuity-like” investment opportunity that ensures capital preservation with the exceptionally long 70 year unexpired lease.”

With the sound financial covenant of Fujitsu Services Ltd, this deal also provides an excellent security of income for our clients. It continues to prove our strategy of success in securing sustainable returns for our investors, where assets are linked to well-established businesses on long leases, and transactions are typically characterised by conservative leverage and no short term refinancing risks.”

The property set in the business park of Basingstoke, is a well established commercial centre with manufacturing, high-tech and office occupiers in the South of England, 29km from Central London. Set adjacent to major motorway networks, and key infrastructure with efficient rail and airports links to Gatwick and Heathrow; the property is positioned well as a business location of choice.