Rasameel Investment House arranges acquisition of $41 million property in US

Rasameel Investment House arranges acquisition of $41 million property in US DUBAI: Rasameel Investment House, a company supervised by Dubai Financial Services Authority, has announced that it has successfully arranged the acquisition of a multi-family residential property in the United States, in accordance with an Islamic Sharia compliant structure in a deal worth US$ 41 million. The deal was structured through a joint venture between Rasameel Investment House and The Meter Group, an experience local operator with over 5,000 units under current management in nearby areas to the acquired property. Property Income Advisors. Inc. had been appointed to oversee the property in a supervisory asset management capacity. Shahid Feroz, vice president of Alternative investments at Rasameel Structured Finance Company said this investment is expected to generate an annual net cash yield in excess of 8 percent, and an internal rate of return above 13 percent. During the five-year investment hold period, the return on investment is expected to exceed 80 percent. Furthermore, the deal is expected to attract an improved leveraged position following implementation of a $5.2 million capital improvement program which is expected to result in investors receiving over 55 percent of their original capital back midway through their investment. He added “We are very pleased with the success of this deal, which we were keen to conclude due to the favorable local market conditions, the property’s proximity to major employment centers and the potential to drive up the property’s investment and rental values through a carefully crafted and proven value-add strategy. Feroz has also pointed out that the property’s unique characteristics including, its unrivalled spacious unit sizes and its unobstructed southern panoramic view of Mount Rainer, gave it a competitive advantage in the market. He said that the value-add strategy would also strive to create operational efficiencies, reduce operating costs and improve the property’s net operating income in order to distribute higher dividends to investors. Feroz stressed that despite the difficult economic condition, Rasameel would continue to look for attractive investment solutions for its clients.