The Arab Banking Corporation’s UK subsidiary, ABCIB Islamic Asset Management Limited, Kuwait-based GSH (Global Securities House) and the Broe Companies of the USA announced the successful launch of The Bronco Fund, a value add Shariah-compliant real estate fund that will invest in up to $140 million of US real estate.
The fund’s target is to acquire a diversified portfolio of offices and industrial assets located in major US cities using the “value add” investment strategy, it said in a statement.
The fund, anticipated to achieve an IRR of 15 percent, has already made its first acquisition: an office building in San Francisco’s South Financial District, one of the US’s premier office markets.
“Following the recent successful sale of the Al Bait UK Real Estate Fund, IAM is delighted to join forces again with GSH in this exciting new venture with the Broe Companies,” says Derek Weist, acting CEO of IAM, a wholly-owned subsidiary of ABC International Bank plc. “The US market at this time offers significant potential for those who are able to identify, assess and swiftly complete acquisitions of underperforming real estate with potential for value enhancement.”