GFH Partners Ltd., a wholly owned subsidiary of GFH Financial Group (“GFH” or the “Group”), today announced the sale and exit of its first diversified U.S. student housing portfolio (the “Portfolio”), resulting in total proceeds of Now it’s $1.twenty two% It will be made available to investors in the fund after a two-year investment period.
Acquired in September 2021, the portfolio consisted of more than 1,200 beds across two properties adjacent to the University of Arkansas and Florida State University. During the pending period, SQ Asset Management, GFH’s US-based student housing specialty asset management subsidiary, was able to reposition its assets through a number of value-add initiatives, resulting in a reduction in net operating income (NOI) has increased. Through these efforts, each facility has been able to perform at least as well as the original business plan, with both facilities reaching 100% occupancy and increasing NOI over the two-year ownership period. It reached 40%. This effort includes entering into a master lease agreement with the University of Arkansas to occupy his 40% of total bed space for three academic years, as well as other operational improvements and increased exposure within the market. The property was also rebranded. As a result of these efforts, operating income improved by approximately 14% compared to the initial plan.
Nael Mustafa, CEO of GFH Partners, commented: By leveraging the expertise of his US-based student housing subsidiary, SQ Asset Management, we are able to add significant value to these investments with short holding periods, exceed goals and deliver in a timely manner. We were able to effectively position our portfolio for sale. Additionally, this exit reflects our continued commitment to achieving investment results and our unique position in the high-performing defense sector and multiple geographies where we have a strong and growing presence. underlines its continued ability to bring revenue-generating opportunities to market. In addition to the US student housing sector, the Group’s current key areas of focus include the US clinic sector, regional education and healthcare opportunities, and investments in the global and Gulf logistics industry. ”