VCBank expands US portfolio

Venture Capital Bank (VCBank), a Bahrain-based Islamic wholesale bank, said it has expanded its multifamily property portfolio in the USA through the acquisition of Glenbridge Manors in Cincinnati, Ohio, for a total transaction value of US $ 57 million. This investment marks the Bank’s fourth property acquisition in the resilient multifamily property sector. The offering has been fully subscribed with VCBank’s network of investors across the GCC.

Glenbridge Manors is a ‘garden and townhouse-style’ apartment community located within the Northeast Cincinnati / Warren County submarket of Ohio, which is regarded as one of the most desirable residential areas in the Midwest region of the USA. The property is rated as a grade ‘A-‘ high-quality asset with an ‘A-‘ grade superior location. Commenting on this transaction, Abdullatif Mohamed Janahi, Board Member and CEO of VCBank, said: “Glenbridge Manors marks the Bank’s fourth ‘garden and townhouse-style’ acquisition in the US multifamily sector, in which we have developed considerable knowledge and expertise since 2015. Our portfolio of multifamily properties in Atlanta and Cincinnati now comprises a total of 1,750 housing units.”

“The Bank’s three properties in Atlanta, which were acquired between 2015 and 2016, have performed exceptionally well to date and have been distributing to investors on a quarterly basis, a yield amounting to an annual cashon-cash return of 8.5 per cent. Glenbridge Manors is expected to deliver a similar yield,” he pointed out. “We are currently identifying further properties in major US metropolitan areas that display robust economic growth and attractive potential for investment,” Janahi added.