Equity Estate, the fund manager of Queristics Investment announced that it has acquired on behalf of the Islamic compliant real estate investment fund Queristics Investment, a joint venture between Kuwait Finance House KSC and Equity Estate, a newly built office located in Zwolle.
The real estate is fully leased to Ernst & Young LLP. The lease, started on 1 October 2009, has a length of 15 years. The investment made amounts to approximately 20 million reflecting a yield of 6.8%.
The acquisition described means that the fund has further optimized its country allocation and has strengthened its cash flow security. Simultaneously the loan facility provided by Aareal Bank AG, amounting to 100 million, has been extended until the end of 2014.
Enrico van Erkelens, Managing Director of Equity Estate, commented: "The acquisition shows the confidence of our partner in the future and in our product. Furthermore, the extension of the Aareal Bank facility creates the required stability and the possibility to extend the portfolio further. The majority of the portfolio consists of long term secured leases, more than 65% of the contracts expires after 2014 of which almost 50% after 2017, with high quality covenants. The portfolio consists of assets in The Netherlands, Belgium and Germany and investments have been made of almost 75 million."
Source: Equity Estate