what is multifamily?
“Multifamily” is a classification of housing where multiple separate residential housing units are contained within one building or several buildings within one complex (and are typically subject to a single title-deed). These units are rented out to tenants, with leases varying in duration but typically lasting for a period of 12 months. Complexes generally contain communal amenities including clubhouses, pools, playgrounds, business centers, Amazon lockers, etc.
Multifamily properties are typically identified as class A, B or C depending on age, finishes, location, amenities and the level of deferred maintenance required.
westbrooke / USA Residential
Established in 2016, Westbrooke USA Residential invests into a diversified portfolio of multifamily properties across the USA alongside established, local operating partners.
The Fund is focused on generating strong, risk-adjusted returns for investors in the form of a quarterly cash flow from operating income and capital appreciation by enhancing the value of the underlying properties owned. Since inception, the Fund has achieved average annual distributions of 5.5% p.a. and an overall investment IRR in excess of 12% p.a.
| 2016 | |
| FUND TYPE: | BVI REGISTERED PRIVATE FUND |
| TARGET 5-YEAR IRR: | 10-12% P.A. |
| (IN USD AFTER FEES) | |
| TARGET DIVIDEND YIELD: | 5-6% P.A. |
| (IN USD AFTER FEES) |
key investment highlights
Investing alongside experienced, trusted, on-the-ground partners
Strong, risk-adjusted dollar returns
Improving underlying assets through renovations / rehabs of the units and communal facilities
Tax-efficient structure for South African and other foreign investors
Diversification across assets, partners and states across the USA
Liquidity through having a diversified portfolio of assets at different stages of the investment lifecycle
key investment fundamentals
Strong supply / demand fundamentals: a large element of the USA population are renters by necessity, leading to very low vacancy rates
Attractive funding from USA government-linked institutions: taking advantage of historically low interest rate, non-recourse funding from Freddie Mac and Fannie Mae
Increasing cost to build new stock: increasing USA construction costs allows the Fund to acquire existing stock below replacement cost, making it difficult for new products to compete
Robust USA property class: resilient through the economic cycles, with the sector having performed well throughout both the 2008 Global Financial Crisis and Covid-19
Consistent annual rent growth: driven by the unique sectoral supply / demand fundamentals, thereby increasing property valuations and operating yields
