VCBank & Seera Investment Bank Announce the Acquisition of a Real Estate Portfolio in the US & Announce its First Distribution

16th March 2016

Venture Capital Bank BSC (c) and Seera Investment Bank BSC (c) ("The Consortium") announced the successful acquisition and completion of the subscription of a real estate portfolio consisting of two multifamily residential assets in Atlanta, Georgia, USA, consisting of 866 units. This investment marks the Consortium's first investment in the US Multifamily sector and has been in cooperation with a US partner that has 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. It's well-known that a large number of the Fortune 500 companies are headquartered in Atlanta making it the fourth most city with headquartered Fortune 500 companies behind New York City, Houston, and Dallas. Atlanta 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.

Bridgewater property sits on a 260,000 square meters gated land and consists of 532 residential units spread over 36 residential buildings, while Preston Creek property sits on a 206,000 square meters gated land consists of 334 residential units spread over 19 residential buildings. Both properties have excellent locations in Atlanta and feature a wide range of recreational facilities within its lush garden-style community.

The Consortium announced that the portfolio's attractive returns enabled the full successful placement with their investors in the GCC.  Furthermore, the performance of the properties in the portfolio for the first quarter has been consistent with the projections and therefore, it was able to distribute the projected yield amounting to an annual cash on cash return of 8.5%, to investors participating in this investment opportunity.