COLUMBIA, MD-GFH Financial Group, a Bahrain-based Islamic investment banking provider, has signed an agreement to invest in a two-asset Northern Virginia data center portfolio with a market value of $100 million. Corporate Office Properties Trust is partnering with GFH on this deal with a 20% investment of its own.
The portfolio is expected to provide semi-annual cash distributions at an annual rate of 9.5% over the investment period and an internal rate of return of 12%, according to GFH.
GCL intends to offer the investment for the private placement, it said.
By partnering with COPT, GFH Capital is assured of an exit on the investment, senior executive officer Luay Ahmadi said in a prepared statement, which strongly suggests this transaction is a recap of two existing COPT's data centers.
It is unclear whether the investment required approval by the Treasury Department's Committee on Foreign Investment in the United States, or CFIUS, which could be likely given COPT's deep ties with the defense community. At last month's Citi Global Property Conference CEO Stephen Budorick told the audience that COPT is the preferred developer of build to suit datacenter shelves in Northern Virginia that supports a cloud computing company, which also serves the US government. “The heart of our defense IT franchise is our 25-year unique relationship with our government customers,” he said.
Thirty-one percent of COPT's revenue is from the DOD or the US government and it leases 3.8 million square feet, which COPT operates.
COPT did not immediately return an inquiry from GlobeSt.com seeking further details about the transaction. We will update this story as we learn more.
COLUMBIA, MD-GFH Financial Group, a Bahrain-based Islamic investment banking provider, has signed an agreement to invest in a two-asset Northern
The portfolio is expected to provide semi-annual cash distributions at an annual rate of 9.5% over the investment period and an internal rate of return of 12%, according to GFH.
GCL intends to offer the investment for the private placement, it said.
By partnering with COPT, GFH Capital is assured of an exit on the investment, senior executive officer Luay Ahmadi said in a prepared statement, which strongly suggests this transaction is a recap of two existing COPT's data centers.
It is unclear whether the investment required approval by the Treasury Department's Committee on Foreign Investment in the United States, or CFIUS, which could be likely given COPT's deep ties with the defense community. At last month's Citi Global Property Conference CEO Stephen Budorick told the audience that COPT is the preferred developer of build to suit datacenter shelves in Northern
Thirty-one percent of COPT's revenue is from the DOD or the US government and it leases 3.8 million square feet, which COPT operates.
COPT did not immediately return an inquiry from GlobeSt.com seeking further details about the transaction. We will update this story as we learn more.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
