GFH acquires second US medical clinics portfolio valued at $ 400mln

GFH acquires second US medical clinics portfolio valued at $ 400mln

Manama: GFH Financial Group ("GFH or the Group") today announced increasing its exposure to the medical office/clinics sector through a second US Medical Clinics Portfolio in a transaction valued at c. US$400 million. The income-yielding portfolio is comprised of 11 geographically diversified assets spread across four US states - California, Texas, Maryland and Louisiana.

Covering an area exceeding 1 million square feet, the Portfolio is anchored by investment-grade credit tenancy through Baylor Scott & White (Moody’s Aa3), Texas A&M Health Science Center (Fitch: AAA), Texas Tech University (Fitch AA+), Memorial Hermann (S&P: A+) and Tidal Health (Moody’s:Aa3). The assets also offer unique specializations within their respective submarkets, positioning them for high occupancy and rent growth.

Supporting the investment, the medical clinics sector has been strong performing and proven to be highly resilient to economic downturns, with 99% rent collection during the COVID-19 pandemic. Furthermore, the medical clinics occupancy reflected the strong demand for the sector in the first half of 2022 according to Colliers reaffirming it resiliency. The sector also continues to benefit from population growth and the aging of the US population accompanied by a steady increase in healthcare expenditure, which accounted for 19% of the US GDP in 2021 as