Ibdar Capital successfully exits US residential property for $103.0 mln

Ibdar Capital B.S.C. (Ibdar), a Category 1 Investment Firm (Islamic Principles) licensed by the Central Bank of Bahrain announced that it has successfully exited from its real estate investment, the Park at Kingsview Village (a multifamily residential property located in Germantown, Maryland, USA) for a total consideration of US$ 103.0 million. The exit provided investors with a return on investment (ROI) of 54% and Internal Rate of Return (IRR) of 10.4% over a 5 year investment period.

Built in 2001, the Park at Kingsview features 12 three- and four-storey buildings totaling 343,980 square feet comprised of 326 apartments. Community amenities include a swimming pool, clubhouse, fitness center, conference room, business center and a children’s playroom. In addition, the property offers walking, jogging and biking trails, tennis courts, playgrounds, a picnic pavilion and a dog park. The property is located in the heart of the I-270 corridor, a biotechnology epicenter of the Mid-Atlantic region. It is also close to the Kingsview Village Shopping Center, a Giant Food-anchored neighborhood shopping center. The property is also located within a mile of the Germantown Soccerplex and the Germantown Indoor Swim Center. Major employers in the vicinity included the National Institutes of Health, the US Food and Drug Administration, Marriott International and Lockheed Martin.

Ibdar and investors acquired a 90% stake in the property in 2016 with a leading US real estate investment firm which undertook a value add program at the property. This was Ibdar’s first foray into the US residential property market. The property weathered 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.

Mohamed Al Hajery, Chairman, 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.”

Ahmed Mostafa, CEO, commented: “A milestone for Ibdar as we successfully exit the first US real estate transaction. We maintain a healthy pipeline of deals with an impressive record of returns and growth.”

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 management remains positive about the strength and underlying fundamentals of US residential real estate. The firm is assessing opportunities in the US and seeks to provide investors with new deals going forward.