Import Bank announces a strategic investment worth US$73 million in the residential sector in Houston

Esterad Bank, a wholly-owned subsidiary of Esterad Venture LLC, announced today that it has completed the acquisition of The Trails at Dominion Park, a Class A-/B+ multifamily residential asset in the United States. United, located in Houston, Texas, in a deal valued at 73 million US dollars.

The investment is expected to give an annual cash return of 9.5%, paid quarterly to investors. The residential asset consists of 843 units; Garden-style, with a current occupancy rate of 91%, it is strategically located near major transportation and employment centers in the city of Houston. These centers include George Bush Intercontinental Airport, which supports 170,000 local jobs, and is ranked the 15th busiest airport in North America. As well as the North Houston area, which is home to more than 68,000 workers, and the Pinto Business Park, a 971-acre industrial park capable of accommodating up to 7,000,000 square feet of user-owned custom build space, light industrial space, and a corporate park with anchor tenants like Amazon.

The deal also benefits from the continued strong performance of the multi-family residential sector in the United States, which has provided stable returns for a long time, and today is witnessing high rental demand accompanied by high occupancy rates, at approximately 96.5%. The property will also be managed by a company with solid experience and a leading specialist manager in the assets and real estate market, which manages more than 20 properties in the city of Houston. With an investment of more than 800 million US dollars.

Commenting on this deal, Bashar Al-Mutawa, Chairman of the Board of Directors of Esterad Bank, said, “We are happy, as we have successfully completed another important deal in 2024, as the bank continues to implement a new strategy, focused on bringing unique opportunities with high and attractive returns to investors, including… Esterad Investment, which made a strategic joint investment in this deal.” Al-Mutawa added: “This is one of the largest assets the bank has acquired since its founding, and we are focused on strengthening our portfolio in 2025, with additional targeted investments amounting to approximately US$300 million throughout the year.”

For his part, Ahmed Abdel Rahman, Acting CEO of Esterad Bank, said: “This transaction is consistent with our focus on identifying and launching deals that provide our investors with alternative assets across global markets. The strong performance of this strategic sector of the US real estate market has made multi-family housing an important area.” To focus and grow for the bank. Abdul Rahman added: “With this deal, which lays the foundations for continued investments in this sector, we see a great demand for rents in major urban centers, with a large population density of the working class. In light of the presence of great demand in addition to the experience and proven track record in the real estate sector, we concluded “This transaction was successfully completed, through off-market negotiations and at a significantly reduced entry price, giving us room to grow and the ability to add, to enhance cash flows and increase yields and overall returns over the holding period.”