Bahrain-based Islamic investment bank, Ibdar Capital has successfully exited from its real estate investment in the multifamily residential property in the US, Park at Kingsview Village, for a total amount of $103 million.
In 2016, Ibdar and investors acquired a 90 percent stake in the property with a leading US real estate investment firm that undertook a value-added program at the property. The exit gave the investors a return on investment (ROI) of 54 percent and an Internal Rate of Return (IRR) of 10.4 percent over a 5 year investment period.
The property is a residential complex built in 2001 with 12 three and four-storey buildings comprised of 326 apartments. Located in the heart of the I-270 corridor, a biotechnology epicenter of the Mid-Atlantic region and home to the National Institutes of Standards and Technology, the National Institutes of Health and the Department of Energy.
Mr. Mohamed Al Hajery, Chairman of Ibdar, stated “This is a landmark for Ibdar and the first exit from our international real estate platform. We are glad that our investors will be receiving an excellent return on their investment.”
The investment in Park at Kingsview Village marked Ibdar’s first foray into the US residential property market. The property survived the COVID-19 pandemic and was resilient during the ensuing downturn. Ibdar’s team worked in conjunction with its partner to navigate this difficult phase and was able to exit at a highly attractive cap rate.
Mr. Fahim Shelot, Director of Alternative Investments and Real Estate, said, “This was a complex transaction where we executed a value add plan, navigated COVID-19 and were then able to position the property in the market for a successful sale. The diligent underwriting and strong fundamentals of the property led to an attractive exit for Ibdar and investors.”
Ibdar Bank is a fully licensed Islamic Wholesale Bank, regulated by the Central Bank of Bahrain. The Bank is active in the ethics-driven debt and capital market providing Islamic bond issuance, wealth management, alternative investments and other investment banking services. Its shareholder base includes blue-chip financial institutions from Kuwait, Bahrain, Saudi and the UAE.