SIDRA Capital announced its second foray into the US market. The Saudi-based alternative investment house, completed the acquisition of Mercy Health headquarters in Cincinnati amounting to $90 million. The property which comprises of 34,000 square meters of office space is leased to Mercy Health, a premier health care provider who received A+ (Standard & Poor›s) and A2 (Moody›s) investment grading.
“We have been following and studying the Cincinnati office market closely and the lack of speculative construction has kept the overall market vacancy rate in check. The Cincinnati office market recovery continues to be driven by robust job growth, and we predict that the expansion we witnessed in 2016 is set to carry through 2017 and into 2018.
We expect the lack of new inventory, in conjunction with an expanding local economy will drive vacancy lower and asking rental rates higher.” said Hani Baothman, Vice Chairman of Sidra Capital.
Cincinnati has a vibrant business community and is home to 10 Fortune 500 company headquarters. Mercy Health is Ohio’s fourth largest employer supporting over 9,000 employees and 1,800 affiliated physicians.
The acquisition of AmerisourceBergen Corporation (Amerisource) HQ in Charlotte, South Carolina, a Fortune 500 company was Sidra Capital’s first foray in the US real estate market with a total value of $67.1 million. — SG
