A Round Hill Capital fund, which targets garden-style US multifamily investments for European institutional investors, has raised additional capital and acquired its third asset.
The US Residential Income and Growth Fund (USRIG) has bought the 445-unit Cortland Allen Station apartment community in Texas, Round Hill said, adding that to facilitate the acquisition, the fund held an undisclosed amount of additional closing, ”attracting new capital from a leading European institutional investor”.
The USRIG fund has now completed multifamily deals worth $250m in total in Texas, North Carolina and Georgia.
Michael Bickford, CEO of Round Hill Capital said: “We launched the USRIG fund to offer our investors the opportunity to benefit from the strong returns presented by the residential real estate market across high-growth southern US markets.
“For both institutional investors and family offices, we offer the advantage of trusted boots on the ground in the US, allowing them to extend their trusted relationship with us to access the strong risk-adjusted returns that the US has to offer.”
Bickford said the latest transaction demonstrates the ongoing attractiveness of US multifamily assets to European investors and Round Hill’s ability to swiftly respond to demand for quality assets in the region.
Rob Reiskin, senior managing director and head of Round Hill Capital Americas said: “We are delighted to be welcoming a new investor to the fund, and to Round Hill Capital more broadly, from the DACH region.
“The current economic climate is encouraging a shift of capital toward defensive real estate assets across our investor base of high profile European institutional investors.”
Reiskin said the pandemic has also accelerated a growing trend over the past 10 years, as both residents and employers relocate from city centre locations to lower density, more affordable destinations, offering a higher quality of life.
“We have a strong pipeline that allows us to efficiently deploy capital and meet our clients’ demand for resilient, long-term investment opportunities in the US.”
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