Henley sells three repositioned US multi-family housing communities

Henley has sold three repositioned US multi-family housing communities in separate deals, two years ahead of the manager’s exit plan.

The assets in Phoenix, Mesa and Peoria, were sold for an undisclosed amount to unnamed buyers.

Henley’s US arm initially acquired two large apartment communities in the summer and fall 2017 with Arizona-focused multi-family real operator Modern Residential.

Since then, the partnership has carried out a repositioning of the assets, achieving business plan exit values in 18-24 months, two years sooner than planned, the private equity real estate investor said.

Garrett Solomon, CIO of Henley North America, said: “When purchased, these properties presented us with an opportunity not only to significantly improve these multi-family units in the Phoenix area but also to act as a foundation from which to capitalise on further opportunities across the US real estate market, which we’ve since done.

“These sales now represent the next phase in our opportunistic strategy to reposition and sell assets within our MF portfolio, taking advantage of the buyer demand for income producing, good-quality, multi-family assets.”

Ian Rickwood, CEO of Henley, said: “This sale represents our first full cycle deal in the US and the returns have well-exceeded expectations as the team has focused on delivering well-purchased assets with great asset management.”

The subsequent off-market sale to multiple parties is testament to the market penetration Henley was able to achieve, Rickwood said.

”The sale demonstrates continued momentum across the Henley North America platform to identify disposal opportunities, the proceeds from which will be invested back into our robust pipeline of future acquisitions.”

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  • QN-2546

    Asset class: Real Estate Equity Fund (non listed).
    Asset region: Europe.
    Size: Total CHF 600m, approx. CHF 100-300m per fund investment.
    Closing date: 2019-06-28.

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