Excelsa, a US-based asset manager, announced the closing of its second U.S. multifamily fund with $153 million in equity raised. The fundraise, which began in January 2022 and reached its target of $150 million by the end of March, targeted family offices and high-net-worth investors from the Middle East and Gulf States.
In line with its current strategy, the new fund will focus on value-add multifamily and core plus properties across several states in the US including the Sun Belt states. The new fund has already deployed $27 million in equity after it jointly acquired (with Excelsa US Real Estate I, LP) Fox Hunt Farms (276 units, Charlotte area) in December 2021 and Coventry Green (256 units, Charleston area) in February 2022. These acquisitions occurred during a pre-launch phase and through bridge loans from the investors.
"The performance of our first fund has been exceptional with very strong yields distributed quarterly and a significant capital appreciation that we are starting to materialize through several exciting exits in the pipeline,” said Fadi Majdalani, Managing Partner of Excelsa. “We are honored that all of our Fund I investors and co-investors have trusted us by joining our second fund and increasing their commitments to Excelsa.”
Khalil Hibri, Head of Business Development at Excelsa, continued by saying: "Our fundraising success highlights the strong appetite for multifamily investments from the Middle East and Gulf states. Our investors seek stable yields and a strong hedge against inflation which U.S. multifamily delivers. We look forward to doing more exciting real estate deals.”
Founded by Bassam Yammine, formerly MENA Co-CEO of Credit Suisse, Excelsa began investing in multifamily properties in 2009. Since then, the firm has acquired more than $420 million in US Real Estate properties through direct investments and through its first multifamily-focused fund Excelsa US Real Estate I, LP. The firm's portfolio includes 2,500 multifamily units as well as office properties and land.
About Excelsa Properties
Excelsa Properties is the United States real estate investment arm of Excelsa Holding, an independent investment firm currently with $420 million in total assets under management with operations in the United States and the Middle East region. For more information, please visit www.excelsaholding.com.