23 Oct 2016
Bahrain-based wholesale Islamic Investment bank, Ibdar Bank, has announced the successful acquisition of a USD78 million Multi Family Housing property in Montgomery County Maryland, USA - the 6th wealthiest county in Washington DC.
Commenting on the acquisition, Mr. Ahmed Al-Rayes, Acting Chief Executive Officer of Ibdar Bank said: “Aligned with the Bank’s strategy to diversify our international real estate portfolio, and responding to investor demand for higher return properties in the US market, Ibdar have completed its first successful foray into the US. The acquisition of a relatively new multi family housing property, which is currently generating higher returns compared to similar quality property within the geographical area, offers a tremendous value-add opportunity and return on investment, with an expected yield of more than 9%.”
The asset, which is a 2001 constructed multifamily property comprised of 326 apartments within 12 three and four story garden-style buildings, includes a renovated clubhouse and is located 25 miles from Downtown Washington DC. The area boasts the third-largest commercial downtown in the US, being home to the Headquarters of all three branches of the US federal government, the White House, World Bank, and the International Monetary Fund, in addition to 170+ foreign embassies and numerous Fortune 500 companies.
“The Bank have selected the East coast, and specifically the Washington D.C Metropolitan Area, due to the solid property fundamentals gained from the existence of strong government employers, large private employers, Fortune 500 HQs, and a higher income population – all factors supporting the residential rent theory”, Mr. Al-Rayes added.
Mr. Bassam Kameshki, Director of Real Estate at Ibdar said: “As the Bank’s first US deal, we have selected a straight forward asset class in a strategic location. We are working with one of the top East coast multifamily operators based in D.C who have a solid track record managing exiting investments and delivering attractive returns. The investment holding period will be up to 5 years, and we are confident that, with our solid business plan and expert partner, we will produce exceptional returns for our investors”.
“The Bank is working to consistently deliver unique, shariah compliant investment opportunities that offer exceptional returns. We have built and are continuing to strengthen our track record and capabilities in various sectors. In addition to regional and global real estate, the Bank has extensive experience in the infrastructure, oil and gas, maritime and retail sectors among others”, Mr. Al-Rayes concluded.