GFH Partners Limited, a subsidiary of GFH Financial Group, announced yesterday the completion of investments worth a total of $450 million in the real estate sector in the United States between the fourth quarter of 2023 and the first quarter of 2024. These investments are concentrated in the medical clinics and student housing sectors. They are two well-performing sectors of the US real estate market, with each benefiting from rental growth, a low national vacancy rate, and market stability.
As for the medical clinics sector, GFH Partners has acquired an asset portfolio worth approximately $150 million. The acquisition assets were selected based on locations within states that exhibit long-term demographic growth, low tax environments and increasing internal migration rates, consistent with the Company’s investment philosophy.
The assets feature a quality of highly credit-rated tenants backed by large healthcare systems such as Memorial Hermann and Baylor Scott & White, which are among the largest healthcare systems in the state of Texas. The assets are expected to witness higher annual rents based on signed contracts with a weighted average lease term exceeding 8 years, and an occupancy rate of up to 98%. This acquisition of medical clinics has increased the number of medical clinics affiliated with GFH Partners to more than 35 properties with a value exceeding $800 million. The portfolio is predominantly managed by GFH Partners’ Big Sky Medical, a medical clinic asset management firm based in Dallas, Texas, with a proven track record in the sector.
Likewise, the Student Accommodation 3 investment, valued at approximately $300 million, includes high-quality assets comprising 3 new income-producing properties strategically located near top-tier public universities in well-performing markets. The portfolio includes 1,300 beds, and is proud to currently have an excellent occupancy rate of 97%, and is well positioned for continued growth.
The portfolio will be managed predominantly by GFH Partners’ Student Quarters, a student housing asset management firm based in Atlanta, Georgia with more than 15,000 beds in its portfolio. The acquisition follows the company’s recent successful exit from its Student Accommodation 1 portfolio, which achieved significantly higher returns of 122% for investors in just two years.
Nael Mostafa, CEO of GFH Partners, said: “With the acquisition of the third series of assets in the medical clinics and student housing sectors, we confirm our commitment to strategic sectors that have strong fundamentals supported by favorable demographic factors, an imbalance between supply and demand, and high income levels. “With these acquisitions, GFH Partners, along with our subsidiaries, Student Quarters and Big Sky, continues to strengthen its position as a gateway to the unique real estate opportunities created and comprehensively managed by the GFH Group.”
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