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Arbah Capital successfully refinances Mezzanine financing provided by US Investment firm KKR on its landmark Sauchiehall Building investment.
Arbah Capital successfully refinances Mezzanine financing provided by US Investment firm KKR on its landmark Sauchiehall Building investment.

Saudi-based Arbah Capital announces the successful refinancing of a £7m Vendor Facility provided by KKR during the acquisition of the landmark Sauchiehall building in July 2109. The Sauchiehall building is a main feature on Sauchiehall Street, one of the three main High streets of the ‘Golden Z’ in the city centre of Glasgow, UK, and was acquired by Arbah for approximately £60 ($76) million through a shariah compliant investment structure.

The investment property comprises a mixed use of 309,000 square feet of lower ground, ground and six upper floors, with a multi-storey car park above the property.

The retail complex has major defensive brand anchors such as Primark, TK Maxx, PureGym, Sports Direct, Superdrug and WH Smith. The car park is operated by Q-park, a leading car park operator, which operates over 870,000 parking spaces across Europe. The asset therefore offers a diversified mix of fashion, fitness, restaurants, healthcare and beauty, with parking.

Glasgow is the 4th largest city in the UK and the city center ranks as the 2nd most important retail district in the UK after the West End, based on CACI ratings. Glasgow has a population of 650,000, a catchment population of 2 million and is the largest city and economy in Scotland. Sauchiehall Street dates back to the 1800s as a historical retail hub and has an annual recorded footfall of 16 million, which attracts the most footfall of the 3 prime retailing streets in Glasgow forming the ‘Golden Z’.

While High Street retail has of course suffered due to the Covid-19 pandemic, Arbah believes that core assets such as the Sauchiehall Building should fair well in a recovery, when confidence in retail shopping returns. Recent developments in vaccines provide grounds for cautious optimism for the longer term.

Mr. Mahmood Al Kooheji, CEO of Arbah Capital, stated: “We are very pleased to have been able to refinance the Vendor Facility from KKR, with the support of our investors in these challenging times. This provides stability to the investment as a whole for the long term and is excellent news for our original equity investors. Our key tenants like Primark have been robust in these times which gives great support to our original investment rationale.”

Arbah Capital is an Investment firm licensed by the Capital Market Authority in Kingdom of Saudi Arabia and headquartered in Dammam with a paid-up capital of SR220 million.