Manama – Esterad Bank, a fully owned subsidiary of Esterad Ventures W.L.L., today announced that it has completed the acquisition of The Trails at Dominion Park, a Class A-/B+ U.S. multifamily housing asset located in Houston, Texas in a transaction valued at US$ 73 million. The investment is expected to deliver a cash-on-cash return of 9.5% per annum to be paid quarterly to investors.

The asset consists of 843 garden style units that are currently 91% occupied and is strategically located in close proximity to key transport and employment centres in Houston. This includes the George Bush Intercontinental Airport, which supports 170,000 local jobs and is the 15th busiest airport in North America, as well as to the North Houston District, home to more than 68,000 workers, and Pinto Business Park, a 971-acre industrial park able to accommodate up to 7,000,000 square feet of build-to-suit and user-owned distribution, light manufacturing and corporate campus space with key tenants such as Amazon.

The transaction also benefits from the ongoing strong performance of the U.S. multifamily sector, which has historically provided stable returns, and is today witnessing high demand for rentals coupled with high occupancy rates of around 96.5%. The property will be managed by a highly experienced and market-leading specialist asset and property manager, who manages over 20 properties in the Houston area with over US$800 million invested.

Commenting, Mr. Bashar Al Mutawa, Chairman of Esterad Bank, said, “We are pleased to have successfully closed another significant transaction in 2024 as the Bank continues to execute its new strategy focused on bringing unique, high yielding opportunities with attractive returns to our investors including Esterad Investment Company, which has made a strategic co-investment in this transaction. This is one of the single largest assets acquired by the Bank since its inception and we are focused on further building our portfolio in 2025 with additional targeted investments of c. US$300 million throughout the year.”  

Mr. Ahmed Abdulrahman, Acting CEO of Esterad Bank, added, “This transaction aligns with our focus on identifying and bringing to market deals that offer our investors exposure to well performing alternative assets across global markets. Strong performance of this strategic segment of the U.S. real estate market continues to make multifamily housing an area of focus and growth for the Bank with this transaction setting the foundations for continued investments in the sector where we see strong demand for rentals in key urban centres with large working-class populations. With significant experience and a strong track record in the sector, we have successfully concluded this transaction off-market at a significantly discounted entry price giving us room for growth and the ability to add value to the asset through planned capital expenditure to upgrade and modernise units with the aim to enhance cash flows and increase yields and overall returns over the hold period.”

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About Esterad Bank

Esterad Bank, a wholly owned subsidiary of Esterad Ventures W.L.L., is a provider and manager of alternative investment products, serving high-net-worth private clients and institutional investors across the Gulf Cooperation Council countries from its headquarters in the Kingdom of Bahrain. The Bank, which has pioneered Sharia compliant venture capital since 2005, manages a diverse and growing portfolio with a global investment footprint spanning the MENA region, United States and Europe. The Bank operates under an Islamic wholesale banking license from the Central Bank of Bahrain and is strengthened by a solid shareholder base, expertise of a world-class team, and an international network of trusted investment partners.

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