Bahrain-based wholesale Islamic investment bank, Ibdar Bank, has announced the successful acquisition of a $78-million multi-family housing property at Montgomery county in Maryland, US, the sixth wealthiest county in Washington DC.

The asset, which is a 2001 constructed multi-family property comprises 326 apartments within 12 three- and four-storey garden-style buildings, includes a renovated clubhouse and is located 25 miles from Downtown Washington DC.

The area boasts the third-largest commercial downtown in the US, being home to the headquarters of all three branches of the US federal government, the White House, World Bank, and the International Monetary Fund, in addition to more than 170 foreign embassies and numerous Fortune 500 companies.

Commenting on the acquisition, Ahmed Al Rayes, the acting chief executive of Ibdar Bank said: "Aligned with the Bank’s strategy to diversify our international real estate portfolio, and responding to investor demand for higher return properties in the US market, Ibdar has completed its first successful foray into the US."

"The acquisition of a relatively new multi family housing property, which is currently generating higher returns compared to similar quality property within the geographical area, offers a tremendous value-add opportunity and return on investment, with an expected yield of more than nine per cent," he noted.

Al Rayes said the bank had selected the East coast, and specifically the Washington D.C Metropolitan Area, due to the solid property fundamentals gained from the existence of strong government employers, large private employers, Fortune 500 head quarters, and a higher income population – all factors supporting the residential rent theory.

Bassam Kameshki, the director of Real Estate at Ibdar, said: "As the bank’s first US deal, we have selected a straight forward asset class in a strategic location. We are working with one of the top East coast multifamily operators based in DC who have a solid track record managing exiting investments and delivering attractive returns."

"The investment holding period will be up to 5 years, and we are confident that, with our solid business plan and expert partner, we will produce exceptional returns for our investors," he noted.

A wholesale Islamic investment bank regulated by the Central Bank of Bahrain, Ibdar Bank is engaged in real estate, private equity, capital markets and investment advisory activities.

"We are working to consistently deliver unique, shariah compliant investment opportunities that offer exceptional returns. We have built and are continuing to strengthen our track record and capabilities in various sectors," said Al Rayes.

"In addition to regional and global real estate, the bank has extensive experience in the infrastructure, oil and gas, maritime and retail sectors among others," he added.-TradeArabia News Service