Bahrain-based Ibdar Bank has announced the successful acquisition of a USD 78 million multifamily housing property in Montgomery County, Maryland, USA.
Commenting on the acquisition, Mr. Ahmed Al-Rayes (biography), Acting Chief Executive Officer of Ibdar Bank (profile), said: “Aligned with the bank’s strategy to diversify our international real estate portfolio, and responding to investor demand for higher return properties in the US market, we have completed its first successful foray into the US.
The acquisition of a relatively new multifamily housing property, which is currently generating higher returns compared to similar quality properties within the geographical area, offers a tremendous value-add opportunity and return on investment, with an expected yield of more than 9%.”
The asset, which is a 2001 constructed multifamily property comprised of 326 apartments within 12 three and four story garden-style buildings, includes a renovated clubhouse and is located 25 miles from downtown Washington D.C.
The area boasts the third-largest commercial downtown in the US, being home to the White House, The World Bank, and the International Monetary Fund, in addition to 170+ foreign embassies and numerous Fortune 500 companies.
“The bank has selected the East coast, and specifically the Washington D.C. Metropolitan Area, due to the solid property fundamentals gained from the existence of strong government employers, large private employers, Fortune 500 HQs, and a higher income population – all factors supporting the residential rent theory,” Mr. Al-Rayes added.
Mr. Bassam Kameshki, Director of Real Estate at Ibdar said: “As the Bank’s first US deal, we have selected a straightforward asset class in a strategic location. We are working with one of the top East coast multifamily operators based in D.C. who have a solid track record managing exiting investments and delivering attractive returns. The investment holding period will be up to five years, and we are confident that, with our solid business plan and expert partner, we will produce exceptional returns for our investors.”
“The bank is working to consistently deliver unique, shariah compliant investment opportunities that offer exceptional returns. We have built and are continuing to strengthen our track record and capabilities in various sectors. In addition to regional and global real estate, the bank has extensive experience in the infrastructure, oil and gas, maritime and retail sectors, among others,” Mr. Al-Rayes concluded.
About Ibdar Bank
Ibdar Bank is a Bahrain-based wholesale Islamic investment bank regulated by the Central Bank of Bahrain and engaged in real estate, private equity, capital markets and investment advisory activities.
The Bank was formed in 2013 when three Bahrain-based Islamic banks, Elaf Bank, Capivest and Capital Management House, merged to become the 3rd largest Islamic investment bank in Bahrain. Since inception, the bank has built a track record in the aviation, real estate, Sukook and asset management sectors, and remains focused on providing superior Islamic investment banking services whilst operating to the highest standards of ethical and sharia banking practices.