Bahrain’s GFH signs US$200mn Las Vegas real estate deal

GFH Financial Group (GFH), the Bahrain-based financial investment group, has announced the signing of a real estate deal worth $200 million to acquire two multifamily residential sites in prime locations in Las Vegas, USA.

In a statement, the investment group said that the acquisition was completed in partnership with Carroll, the US-based real estate specialist firm which manages approximately $5.2 billion worth of assets.

The assets consist of two multifamily residential compounds Emerald Springs and The Meadows, located close to Las Vegas suburban areas. The community sites include 819 garden-style units combined and include amenities such as swimming pools, football fields, fitness centres and clubhouses for residents.

Razi Al Merbati, Chief Executive Officer of GFH Capital KSA, said: “Our recent multifamily residence deal alongside Carroll in the US is testament to our strong relationships across a diverse range of sectors and markets. We worked closely with our partners to see the acquisition come to fruition.”

He added: “This sector has proven its resilience with a more than 90% rental collection rate during Covid and has continued to witness significant investor interest. Around $140 billion was invested in multifamily in 2020, with 0.6% year-on-year growth in multifamily rents and growth in average sales price of US single-family homes.”

Merbati added that GFH’s investment strategy in residential assets is based on building a diverse and stable portfolio that targets areas of high demographic growth. Las Vegas is ranked the top city among the US’ high growth secondary markets. It has the highest occupancy rates, at 96.5%, the second highest population growth year-on-year, at 2.2%, and the second highest annual rental growth, at 3.7%.

Carroll manages more than 28,000 units in the US following its latest acquisition with GFH. The firm has developed a portfolio including student housing, single-family residential, and retail communities, and has overseen more than $250 million of construction management for both its owned and fee partners.

Established 20 years ago, GFH currently has more than $12 billion of assets and assets funds under management