GFH, Bahrain subsidiary exits from US housing portfolio

GFH, Bahrain subsidiary exits from US housing portfolio

GFH Partners, a fully owned subsidiary of GFH Financial Group, has sold and exited from its first diversified US student housing portfolio, delivering total proceeds of 122 per cent to investors in the fund over a two-year investment period.

Acquired in September 2021, the portfolio comprised over 1,200 beds across two assets adjacent to the University of Arkansas and Florida State University.

During the hold, SQ Asset Management, GFH’s US-based specialised student housing asset management subsidiary, was able to reposition the assets through a number of value-add initiatives that resulted in increased net operating income (NOI).

These initiatives enabled the properties to each perform in-line with and above the original business plan, with both having occupancies at 100pc and an NOI growth over the two-year hold period of around 40pc.

Initiatives included the signing of the master lease with the University of Arkansas to take up 40pc of the total bed spaces for three academic years, along with other operational improvements, and the rebranding of the properties to improve exposure within the market. All such initiatives resulted in an improved operating income of approximately 14pc compared to the original projections.

Commenting, GFH Partners chief executive Nael Mustafa said, “We’re delighted to announce another successful exit