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IIB ventures into US market

January 20, 2014

International Investment Bank (IIB) announced the acquisition of a $250 million , 2,400 unit multifamily residential portfolio with US-based Atlas Residential with expected double-digit dividends for their investors. The Class A portfolio was acquired from Dallas -based Pillar Income Asset Management and completed on December 30, 2013 . Existing senior debt for the portfolio, which is insured by US Department of Housing and Urban Development (HUD) was assumed during the transaction, with Macquarie Bank Limited providing US$71m in mezzanine financing. IIB Chief Executive Officer and Board Member Aabed Al Zeera said, "This partnership will create a platform for our investors seeking stabilised cash yields to participate in the booming Texas economy. Our investors will be able to earn a healthy current cash return in this very stable Class A portfolio." Mr. Al Zeera added that the acquisition is the first US investment of the bank and they have several more planned investments in the pipeline that will expand their exposure to the US and European market. With the new addition to the IIB portfolio, he expects annual dividends at 11 per cent distributed quarterly with the investment to be held for 5-7 years. "Our final exit is also expected to yield a 16pc profit," he said to DT News . The 11 property portfolio is primarily located in Dallas, Texas but includes assets in the Houston , Midland / Odessa and El Paso . The IIB / Atlas venture was created to acquire, improve and operate these assets to capitalise upon their long-term fundamentals. Atlas Residential Management will provide asset management for each of the properties and will effect the cosmetic enhancement and physical upgrades planned for each of the properties. IIB Chairman Saeed Al Fahim said, "The acquisition of these high quality multifamily residential apartment buildings adheres to our core strategy of focusing on investment opportunities with the objective of achieving attractive returns for our investors and we are excited about our partnership with Atlas on this project as well as similar endeavours in the future". Atlas Residential CEO Steven Ivankovich said, "This was a great way to conclude 2013. This acquisition reinforces our belief in the Texas market where we have a long and successful track record of owning and managing diverse apartment portfolios." Atlas intends to acquire additional similar assets in major markets during 2014. Saker Capital Ltd. acted as adviser on behalf of Atlas Residential. copyright


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Source: Daily Tribune (Bahrain)


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