MANAMA: Venture Capital Bank (VCBank) has acquired Glenbridge Manors in Cincinnati, US, for a total transaction value of $57 million.

The Bahrain-based Islamic wholesale bank said this marks its fourth acquisition in the resilient multifamily property sector.

The portfolio expansion also continues VCBank’s collaboration with a long-standing US partner, who has extensive experience in the management and operation of multifamily residential assets.

The offering has been fully subscribed with the bank’s network of investors across the GCC.

Glenbridge Manors is a “garden and townhouse-style” apartment community located within the Northeast Cincinnati/Warren County submarket of Ohio, which is regarded as one of the most desirable residential areas in the Midwest region of the US.

The gated property comprises 274 apartments set amid scenic landscaping and is supported by extensive amenities. Transaction volume for apartments in Ohio increased by nearly 50 per cent during the first half of 2018, compared with 17.4pc for the Midwest region and 6.7pc nationally.

This indicates that capital is flowing to the Midwest, and particularly to Ohio, at a faster rate than the national average, reinforcing positive sentiment towards the strong fundamentals and proven resilience of the regional multifamily sector.

Significantly, there is strong demand for multifamily apartments in Cincinnati, with historical occupancy rates over the past six years averaging above 95pc.

VCBank board member and chief executive Abdullatif Janahi said: “Glenbridge Manors marks the bank’s fourth garden and townhouse-style acquisition in the US multifamily sector, in which we have developed considerable knowledge and expertise since 2015. Our portfolio of multifamily properties in Atlanta and Cincinnati now comprises a total of 1,750 housing units.

“The bank’s three properties in Atlanta, which were acquired between 2015 and 2016, have performed exceptionally well to date; and have been distributing to investors on a quarterly basis, a yield amounting to an annual cash-on-cash return of 8.5pc. Glenbridge Manors is expected to deliver a similar yield,” he added.

“We are positive about the US multifamily sector in the foreseeable future due to its strong market fundamentals; together with its demonstrable track record as the real estate most resilient sector to recessions. We are currently identifying further properties in major US metropolitan areas that display robust economic growth and attractive potential for investment.”

 

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