Kuwait's KFH buys $71m warehouse in Sweden

Kuwait Finance House said on Saturday it has invested more than $71m to buy a warehouse property for logistics operations in Sweden. It said the Hallsberg-based property with a built up area of 70,000 sq m is leased to Ahlsell on a long term lease contract "generating stable and good cash flow income stream". Ahsell, a company trading and distributing light equipments and electrical appliances since 1877, achieved EUR2bn revenues last year, KFH added. Hallsberg is considered a logistic services hub for supplying the main Swedish cities and an exporting centre to the neighbouring Nordic countries. Ali Al-Ghannam, KFH's international real estate department manager, said the acquisition would add value to the company's pan European real estate portfolio. He added that KFH last year acquired an office building in the Netherlands leased to Ernst & Young for 15 years. The deal is KFH's second investment in Sweden after the Swedish Post Office Terminals portfolio back in 2002, bought for approximately EU320m that consisted 14 postal distribution centres. The portfolio was later sold in early 2007, Al-Ghannam said. He added that KFH will consider further investment opportunities in various international real estate markets. KFH said in a statement that Sweden is rated the third best logistic location in the world.