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Bahrain’s GFH acquires USD90m multifamily residential property

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GFH Financial Group is currently looking to grow its multifamily residential portfolio in the US and has previously invested USD 200 million in this space.

Bahrain-based GFH Financial Group has acquired a luxury residential high rise in Baltimore, Maryland, according to a statement from the company. The deal was valued at USD 90 million, it said.

The property was acquired through a Sharia-compliant joint venture established with US-based real estate investment firm Broadshore Capital Partners, which is majority owned by Fortune 500 company Guardian Life.

The statement noted that the acquisition of the 17-storey high rise will help to diversify the group’s US assets in the backdrop of growing demand from renters for multifamily residential properties in the US.

Facilities at the multifamily residential building, which features loft-style apartments with private balconies, include a health club and a rooftop swimming pool.

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This is the third US multifamily residential property acquired by GFH Financial Group

The downtown Baltimore property is the third addition to GFH Financial Group’s US multifamily residential portfolio, the statement said.

In September this year, GFH Financial Group had acquired two multifamily residential sites through a partnership with real estate investment specialist Carroll. The deal was sized at USD 200 million, with both properties – Emerald Springs and The Meadows – located at prime locations in Las Vegas.

“The US multifamily residential property sector is a significant opportunity for GFH and our investors. The segment demonstrated clear resilience during the pandemic compared to most other parts of the real estate market which experienced a decline. Investment in the multifamily space remained resilient during COVID because of the defensive nature of the sector,” Razi Al Murbati, CEO of GFH Capital S.A., said.

Al Murbati added that the group was looking to further acquire a “diverse set of residential properties” in the US to boost its cash flows.

These will “vary in terms of location, size, and local demographics to generate stable cash flows. Our ambitious but calculated real estate strategy favours resilience and is focused on delivering growth and value creation for stakeholders,” he noted.

The company’s total assets and funds under management now exceed USD 13 billion, Al Murbati continued.

More specifically, the statement noted that GFH Financial Group targets US multifamily residential properties based on areas that have a strong presence of healthcare and educational facilities. Meanwhile, it is also targeting suburban properties with larger living spaces, facilities and outdoor space, amid growing demand for the same.

Assets in the company’s US portfolio are located in Sun Belt states across southern and southwestern US.

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