Through Key Property Investment LTD (KPI), its 50/50 U.K. joint venture with St. Modwen Properties plc, the sale was completed on the 16th of April, 2007 yielding a return for KPI of 17% on total costs. KPI’s return on equity, for this transaction, amounted to over 84%. Salhia’s share from the net profits of the sale will amount to approximately £1.85 million (KD1.06 million).
AbdulAziz Al-Nafisi- Investment Group Head of Salhia Real Estate Company said, “We are delighted with returns that we have attained in the sale and development of Trafford Park and eagerly look forward to closing some other transactions in the near future. In this transaction, Salhia Real Estate Company has clearly reiterated its ability to generate shareholder value beyond its home market.”
The 360,000 sq ft (33,444 sq m) building, believed to be the largest single letting in the North West of England so far this year, will be let on completion to Adidas Group at a rent of £4.75 per sq ft for 15 years. The completion of the development is scheduled for November 2007.
The property, once completed, will comprise a state of the art, high bay distribution facility providing accommodation totaling some 358,367 sq ft (33,292.3 sq m) including 19,956 sq ft (1,853.9 sq m) of 2 storey high quality office accommodations.
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