GFH Financial Group, a Bahrain-based investment bank, has bought a new building in the United States for $ 90 million to expand its real estate portfolio in the world’s largest economy.
The company acquired the residential tower in Baltimore in a joint venture with Broadshore Capital Partners, GFH announced on Sunday in a statement to the Dubai Financial Market, where its shares are traded.
Broadshore is owned by Guardian Life, a New York-based Fortune 500 company with more than $ 71 billion in assets under management.
“The US multi-family housing sector is a significant opportunity for GFH and our investors,” said Razi Al Murbati, CEO of GFH Capital.
“The segment has shown significant resilience during the pandemic compared to most other parts of the real estate market that have seen a decline.”
GFH, which manages more than $ 13 billion in assets and funds, is growing its investments worldwide.
Earlier this year, as part of its expansion plans, the company acquired a $ 100 million student residence portfolio that is affiliated with several top universities in the United States.
It also bought a U.S. warehouse and distribution logistics center for $ 100 million in June and is awaiting shareholder approval to fully acquire Bahrain-based Khaleeji Commercial Bank.
The recent acquisition of GFH in Baltimore follows a strong performance from the multi-family sector in the US, with rents rising 0.6 percent on an annual basis in March, according to the company. In 2020, more than $ 140 billion in capital was invested in the multi-family sector.
The investment bank also aims to acquire âa diverse range of US residential properties that will vary in location, size and local demographics in order to generate stable cash flows,â said Al Murbati.
“Our ambitious but calculated real estate strategy promotes resilience and is geared towards generating growth and value creation for the stakeholders.”
The company more than doubled its net income for the second quarter of 2021, driven by growth in its businesses despite the ongoing impact of the Covid-19 pandemic.
Regardless, the company said it bought back 7.75 million of its own shares on the Bahrain and Dubai stock exchanges. The acquisition corresponds to 4.9 percent of the total number of shares issued as of October 28, 2021.
Updated: October 31, 2021, 7:58 a.m.