Bridgewater and Preston Creek
A consortium consisting of VCBank and Seera Investment Bank acquired a real estate portfolio valued at USD 26.5 million during FY 2016. The portfolio consists of two multifamily residential assets – Bridgewater and Preston Creek – in Atlanta, Georgia, USA, comprising a total of 866 units. This investment marks the consortium’s first investment in the US multifamily sector, in cooperation with a US joint-venture partner offering extensive experience in the management and operation of multifamily residential assets.
After closely screening and reviewing many investment opportunities in various major US metropolitan areas, the consortium chose the city of Atlanta, due to its robust economic factors which are expected to continue during the investment holding period. Atlanta is home to the highest number of headquartered Fortune 500 companies after New York City, Houston, and Dallas. The city is witnessing strong population and job growth, and represents an attractive real estate market with high potential for further rental growth and value appreciation, which will positively enhance the value of the investment.
The Bridgewater property sits on 260,000 square metres of gated land, and consists of 532 residential units spread over 36 buildings; while the Preston Creek property covers 206,000 square metres of gated land, comprising 334 residential units in 19 buildings. Both properties have excellent locations in Atlanta, and feature a wide range of recreational facilities within a garden-style community.
The performance of the properties in the portfolio to date has been consistent with the offering’s projections, and the consortium has made three quarterly distributions to investors equating to an annual cash return of 8.5 per cent.