Bahrain-based investment firm GFH Financial Group has signed a deal to acquire residential properties worth $200 million in the US, the company said on Wednesday.
The new assets are two multifamily residential compounds Emerald Springs and The Meadows, located close to Las Vegas’ suburban areas, the company said in a statement to the Dubai Financial Market (DFM). They include 819 garden-style residential units, with amenities such as swimming pools, football fields, fitness centres and clubhouses.
The real estate deal, completed in partnership with American real estate specialist Carroll, is in line with GFH’s strategy to build a diverse portfolio that targets areas of high demographic growth. Carroll oversees around $5.2 billion assets.
High occupancy rates
Las Vegas is one of the major markets for secondary properties in the US, with occupancy rates averaging 96.5 percent, the highest in the sector. The city also has the second-highest annual rental growth at 3.7 percent and second-highest population growth at 2.2 percent year-on-year.
“Our recent multifamily residence deal alongside Carroll in the US is testament to our strong relationships across a diverse range of sectors and markets. We worked closely with our partners to see the acquisition come to fruition,” said Razi Al Merbati, chief executive officer of GFH Capital KSA.
He said the multifamily property market has proven its resilience, with more than 90 percent rental collection rate during COVID-19. “
[It] has continued to witness significant investor interest. Around $140 billion was invested in multifamily in 2020, with 0.6 percent year-on-year growth [in rents],” he added.
(Writing by Cleofe Maceda; editing by Daniel Luiz)
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