Kuwait's Kamco Invest has acquired ServiceNow’s world headquarters, a 328,867 square foot Class A office campus located in Silicon Valley, USA for an estimated value of $286 million.
Kamco Invest, an active asset management and investment banking firm, is ranked as the fifth-largest asset manager in the GCC region, with a portfolio of assets under management (AUM) of around $13.7 billion, with various asset classes and jurisdictions.
ServiceNow is a leader in cloud computing and IT service management business solutions and is listed on New York Stock Exchange with a market capitalisation exceeding $50 billion.
Mohammad Al-Othman, Executive Director of Real Estate Investments at Kamco Invest, said, "We are committed towards scaling our real estate portfolio through diversified assets and further growing the size of the international real estate portfolio we manage, which now surpasses $1 billion, as committed by our CEO in a press conference earlier this year.”
The office campus is fully leased to ServiceNow and is expected to generate an average annual cash yield of 7.8 percent. Kamco Invest is also exploring options of another purchase.
Al-Othman concluded: “We are currently exploring a new acquisition of a Class A property with strong cash flows from credit tenants, as well as two exits of existing properties with good returns. It is worth noting that the international real estate portfolio, valued at $1.18 billion, includes 13 Grade “A” properties in US, UK and Europe and leased to companies with strong financial positions and high cash flow. The properties generate an average annual cash yield of 7.8 percent."
(Writing by Seban Scaria, editing by Anoop Menon)
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