Bahrain sovereign fund partners with Sentinel in US real estate

Bahrain Mumtalakat Holding Company (Mumtalakat), Bahrain’s sovereign wealth fund has acquired the office campus in Raleigh-Durham, North Carolina, in a joint venture with New York investment manager Sentinel Real Estate Investment Corporation (Sentinel).

The Class A campus is fully leased to tech maven Lenovo, and is located in Research Triangle Park, a 7,000-acre scientific research park, housing over 250 companies. The campus provides strong cash flows, attractive yields and solid rent growth, says the sovereign wealth fund.

Mahmood Alkooheji, Mumtalakat’s chief executive officer explains, “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.”

John Streicker, chairman of Sentinel, adds: “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.”

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