Bahrain-based GFH Financial Group has exited from its investment in two student housing assets in the US.
The company’s fully owned subsidiary, GFH Partners, has just sold the properties which were acquired in September 2021, according to a disclosure on the Dubai Financial Market (DFM) on Thursday.
The transaction delivered proceeds of 122% to investors in the fund, following a two-year investment period, the company said.
The properties, representing GFH’s first diversified US student housing portfolio, consisted of more than 1,200 beds across two assets near the University of Arkansas and Florida State University.
During the two-year investment period, the properties recorded occupancies at 100% and a net operating income (NOI) growth of 40%
“We were able to add considerable value to these investments over a short hold period that enabled us to exceed targets and effectively position the portfolio for a timely sale,” said Nael Mustafa, CEO at GFH Partners.
Mustafa noted that in addition to the US student housing sector, other key areas of focus for the Group today include the medical offices sector in the US, regional education and healthcare opportunities and investments in the global and GCC logistics industry.
GFH did not disclose the value of the transaction.
In July 2021, the company announced it had signed a deal to acquire a $100 million portfolio of student housing assets adjacent to top US universities.
(Writing by Cleofe Maceda; editing by Seban Scaria)