Saudi-Based Sidra Capital announced its acquisition of an office building in Fort Mill, South Carolina an investment worth SR 350 million ($93.3 million), reported Arabian Business.
The newly built office building is located in the prosperous Charlotte suburb of Fort Mill, South Carolina and is leased to a Fortune 500 company, a subsidiary of Amerisource Bergen Corporation.
The office building is 5 floors high, 23,000 square meters, and can accommodate 1,485 cars in its parking lot, according to Saudi Gazette.
“The strategy for this project is to provide our investors with highly attractive returns backed by a secure tenant combined with recently constructed facilities, whilst pursuing opportunities to increase value to the property,” said Hani Baothman, vice chairman of Sidra Capital.
Baothman described investing in South Carolina, a second-tier 18-hour city, as a viable investment alternative to the “big six” markets of Boston, Chicago, Los Angeles, New York, San Francisco and Washington DC.
“18-hour cities have emerged as a more affordable investment option compared to larger markets.These cities are attractive because they typically feature lower cap rate compression, meaning property values tend to remain stable rather than spiking up or down significantly,” added Currim Oozeer, CEO of Sidra Capital.
Sidra Capital is the strategic advisor on the project and currently manages assets worth SR 3.3 billion ($US 880 million).