Al Salam Bank-Bahrain has made an early exit from its portfolio of seven multi-family assets in the US for a gross sale of $182.5 million.
The investment thesis was exceeded in a shorter investment period than the original anticipated investment horizon of 5 years (aiming for a 2021 exit), leading to an early exit, the bank said in a statement.
“The US real estate market showed steady appreciation over the investment period, with some pockets seeing spurts of accelerated growth. The exit comes at an opportune time, ahead of the uncertainty of the current COVID-19 pandemic,” Ali Habib Qassim, Head of Private Banking at Al Salam Bank-Bahrain said.
“With the current volatile environment bringing new attractive opportunities, which are being assessed on an opportunistic basis, the decision to exit early has enabled our investors to increase the cash allocation in their respective portfolios in anticipation of tactical deployment over the coming period,” he said.
The portfolio of 2,032 units was acquired back in 2016 and underwent a range of upgrades to reposition the assets and enhance value. It comprises of seven Class-B multi-family communities in North Carolina and Texas.
“Both North Carolina and Texas enjoyed a buoyant 2019, supported by growth in job creation and positive economic outlook. This resulted in an uplift in rents and reduction in vacancy rates, which contributed positively to the value of multi-family real estate assets,” the statement said.
Al Salam Bank-Bahrain is a Shariah-compliant bank headquartered in Bahrain. The bank is dual-listed on the Bahrain Bourse and the Dubai Financial Market.
(Writing by Gerard Aoun, editing by Seban Scaria)
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