Mumtalakat acquires commercial real estate assets in the United States in partnership with Sentinel Real Estate Investment Corporation
6 February 2018
Bahrain Mumtalakat Holding Company (Mumtalakat), the sovereign wealth fund of the Kingdom of Bahrain, announced today its acquisition of an office campus in Raleigh-Durham, North Carolina, United States of America in partnership with Sentinel Real Estate Investment Corporation (Sentinel). This is the first joint venture with Sentinel, a New York based real estate investment management firm with a proven track record across various sectors throughout the US.
A signing ceremony was held at Mumtalakat’s offices today, Tuesday 6th February 2018, in the presence of Mahmood H. Alkooheji, Chief Executive Officer of Mumtalakat and John H. Streicker, Chairman of Sentinel.
The state-of-the-art Class A campus is fully leased to Lenovo, a Fortune 500 global technology leader and one of the largest PC makers in the world. Located in the heart of Research Triangle Park, a 7,000-acre (over 28 square kilometers) dedicated scientific research park in the United States, the campus provides strong cash flows, attractive yields and solid rent growth. Research Triangle Park houses over 250 companies in which more than 50,000 people work. It continues to recruit and retain some of the world’s leading corporations and rapidly growing technology and innovation firms.
Commenting on the, acquisition, Mahmood H. Alkooheji, Chief Executive Officer of Mumtalakat said, “The real estate sector is a key component of our portfolio growth strategy, and the US real estate market is growing significantly. In fact, Raleigh-Durham is one of the fastest growing markets in the US. The area has shown strong employment growth, at twice the national average over the past year, setting a new peak in total employment. It also boasts a dynamic business climate and solid infrastructure with a growing economy, which makes it a very attractive market for us to invest in. With this transaction, the sector represents approximately 22% of our total portfolio companies.”
“Our partnership with Sentinel is in line with our collaborative approach to investments for further diversification and growth. It furthers Mumtalakat’s real estate investment strategy by focusing on geographic diversification into high demand and developed markets across a broad range of income generating assets including commercial offices,” added Alkooheji.
John H. Streicker, Chairman of Sentinel, said of the transaction, “We are very pleased to be venturing with Mumtalakat on this first joint acquisition. Sentinel is very comfortable with the Raleigh-Durham market. We have been active investors in the region since the 1970s and maintain a regional office there. The stable, long-term growth exhibited by the region bodes well for this exceptional property. For the last decade and a half, Sentinel’s corporate strategy has been to align ourselves with sophisticated global investors. We find that these cross border alliances have growing importance as the world becomes more interconnected. We continue to learn from the fresh perspectives and new practices that accompany these partnerships.”