VCBank Completes Successful Exit of US Westhaven Multi-Family Residential Assets, Provides 54% Return on Investment to Investors
Manama, Bahrain: Venture Capital Bank (VCBank), an Islamic wholesale bank licensed by the Central Bank of Bahrain, today announced its successful exit from a real estate portfolio in the US multi-family residential sector. With a gross sale value of $ 116.5 million, this release generated a return on investment (ROI) of 54 percent; and provided investors with an internal rate of return (IRR) of 11% over the five-year holding period.
The investment includes Westhaven multi-family residential assets in Atlanta, Georgia, United States. VCBank and its investors jointly acquired a 90 percent stake in this portfolio in 2016. The acquisition was made in cooperation with a specialist US operator, which has extensive experience and expertise in the management and operation of assets. multi-family residential.
Commenting on the outing, Mr. Asad Aftab, Project Manager, US Multi-Family Investments at VCBank, said: “These investments have performed exceptionally well during the initial period, providing investors with quarterly dividends ahead of Covid and a product substantial output equivalent to 20%. of investment value. House rent collection was badly hit in 2020 due to Covid, but with constant monitoring and close scrutiny, VCBank continued to seek potential buyers to come out at an opportunistic price. Following the acquisition, the properties underwent a comprehensive value creation program, which involved renovating its apartments, expanding leisure facilities and improving the attractiveness of the properties. .
WestHaven at Vinings is a 610 unit garden and townhouse style apartment community in Atlanta, Georgia. Built in 1984-1989 and remodeled in 2012-2015, the property is located in the exceptional Smyrna submarket, approximately 12 miles northwest of downtown Atlanta.
The setting of the property is excellent for supporting long term value, both in terms of its location in the metropolitan area and its very attractive site. The property has direct access to the Cumberland / Galleria shopping district, which contains 17 million square feet of office space and 3 million square feet of retail space.
VCBank’s growing track record of successful exits from investments in the U.S. multi-family residential sector includes Bridgewater and Preston Creek in Atlanta in 2019 and now WestHaven at Vinings in Atlanta in 2021.
According to Mr. Robert Wages, CEO of VCBank: “Our successful value-added transactions to date in the US multifamily sector – comprising four property acquisitions and three exits – underscore the considerable knowledge and expertise that the Bank has developed in this regard. domain since 2015 They illustrate the excellent returns provided to shareholders and investors resulting from our strategic focus on attractive yielding real estate opportunities in the United States.
“We are optimistic about the future outlook for the US real estate sector given its strong market fundamentals, as well as its demonstrable resilience to economic downturns. The Bank is currently identifying other investment opportunities in major metropolitan areas that show robust economic growth and attractive investment potential. In addition, we are also looking at similar potential investment opportunities in Europe, ”he concluded.