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Kamco Invest acquires Silicon Valley-based asset at $286m

Kamco Invest acquires Silicon Valley-based asset at $286m
A yearly net rate of return of 7.5% is expected.

Mubasher: Kamco Invest announced the successful takeover of ServiceNow’s world headquarters, a 328,867 square foot Class A office campus situated in Silicon Valley in California, at a value of $286 million (nearly KWD 86.9 million), the company disclosed to Boursa Kuwait.   

Fully leased to ServiceNow, the cutting-edge campus could generate an annual net cash yield of 7.5%, according to a press release on Sunday.  

ServiceNow is a cloud computing and IT service management business solutions leader and is listed on the New York Stock Exchange with a market capitalisation topping $50 billion.  

The transaction will generate higher assets and liabilities by $286 million, each, and will not have any material impact on the company’s income statement, Kamco said in a bourse filing on Sunday.    

Commenting on this acquisition, executive director of real estate investments at Kamco Invest, Mohammad Al Othman 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.”

“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,” he concluded.