SEDCO Capital achieves 30% IRR from office property sale in Germany

SEDCO Capital, a global Shariah-compliant asset manager, successfully exited German-based ABC West; a multi-let office property, realizing an Internal Rate of Return (IRR) of 30% for its investors.

SEDCO Capital sold the property for €52.9 million compared to a purchase price of €29.4 million in 2017. ABC West is a 13,723 sqm of office space located in Frankfurt. It was managed by GLL Real Estate Partners GmbH, a European real estate asset manager.

With more than €485mn of investments made in European real estate; SEDCO Capital’s International Real Estate team actively manages a diverse portfolio of properties that consists of industrial, healthcare, retail, and office buildings, spanning across the United Kingdom, Germany, France, and Italy.

Samer Abu Aker, CEO of SEDCO Capital, said: “Despite the challenging global market conditions; our International Real Estate team continues to make significant strides in cementing SEDCO Capital’s solid track record and global reputation as a value enhancing real estate investor.

“This is a testament of our ability to leverage our market expertise and strong network of international partners; which enables us to identify both attractive real estate investment opportunities and sell at a favorable price.

“Looking ahead, we will continue to identify investment opportunities that fit within the framework of our ethical investment principles. Besides, capitalizing on our relationships to generate the highest possible risk adjusted return for our investors.”

Strong outperformance

Aly Meghani, head of international real estate at SEDCO Capital, said: “We are proud of having successfully executed our value-add business plan for ABC West, delivering strong outperformance despite prevailing uncertain macroeconomic conditions.

“We remain disciplined in our search for compelling investment opportunities in Europe; which will further our commitment to keeping our investors’ interest at the heart of every calculated decision we make.”

SEDCO Capital has a strong track record of realized returns. Excluding the sale of ABC West; the Firm has successfully made 12 real estate divestments in the US, Europe, and Asia between 2001 to 2019. The properties also span the residential, hotel, office, healthcare and logistics sectors in the United States and Europe, representing an average IRR of 11.7%.

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