GFH Partners exits logistics facility in the US
GFH Partners announced its exit from a logistics facility in the United States in favor of Michelin America, in partnership with Silver Creek Development, for $151 million.
Translated by Qiyas from القبس — Original source
Gulf Investment Holdings Partners LLC (“GIH Partners”), the Dubai International Financial Centre-based investment manager and the global real estate investment arm of Gulf Investment Holdings, in collaboration with GIH Partners Fund Management, announced the successful exit from a massive two-million-square-foot regional distribution facility and an adjacent land parcel in Wilmington, Illinois, through the sale of the property for $151 million to Michelin North America, the long-term tenant of the facility. The transaction was completed in partnership with Silver Creek Development. GIH Partners had acquired the property in February 2021 in partnership with Silver Creek Development. During the investment period, the partners implemented several initiatives aimed at enhancing the asset’s value, including the expansion of trailer parking and securing an early extension of Michelin’s lease beyond its previous expiration date in November 2027. The sale closed on October 6, 2026, marking GIH Partners’ fourth exit from its U.S. industrial and logistics portfolio, delivering returns to investors in line with the fund’s investment objectives. This result was achieved amid a challenging commercial real estate environment characterized by persistently high interest rates, limited debt financing availability, declining transaction volumes, and continued divergence between buyer and seller price expectations. The facility boasts a 100% occupancy rate and is one of only two large regional distribution centers used by Michelin in the United States, handling a significant portion of the company’s imported inventory for the U.S. market. Located approximately 60 miles southwest of downtown Chicago on a 91-acre site, the property benefits from easy access to Interstate 55 and the BNSF Railway network. More than 400 employees work at the facility, playing a key role in Michelin’s U.S. operations. Supporting Operations and Chief Executive Officer of GIH Partners, Nael Mustafa, stated: “There is no stronger testament to the quality of an asset than for its tenant to choose to own it. Throughout our investment period, we worked closely with Michelin to improve the facility and support its operations, culminating in a successful exit for our investors.” He added, “Achieving this result in a difficult market environment is a clear testament to our investment philosophy of acquiring assets with prime locations and critical operational importance, occupied by first-class tenants, and creating value through active asset management throughout the entire investment cycle, from sourcing and acquisition to exit and return realization.” GIH Partners remains an active investor in the logistics sector, continuing to deploy capital through its U.S. logistics platform, which focuses on acquiring and assembling transport-related industrial assets, including truck terminals, vehicle fleet yards, equipment storage facilities, shipping container yards, and other logistics assets of critical operational importance. This strategy is grounded in GIH Partners’ track record in the U.S. industrial and logistics real estate sector, which targets assets with prime locations, supported by first-class tenants and sustained long-term structural demand.
