Mirabaud’s Asset Management division, on behalf of its Middle Eastern and international clientele, has structured the acquisition and retained management of two of the single tenant office buildings in the US.
Both properties located at District 237 at San Jose in California were acquired for $95.2 million.
This acquisition will allow regional investors involved to benefit from the existing long-term leases with a remaining lease term and no termination options of greater than 10 years with the promise of cash-on-cash returns net after all taxes of at least 8%.
"We constantly work towards sourcing unique deals for our clientele and deploying capital in trophy assets, despite the global pandemic, as we continue to demonstrate our ability to execute deals in a timely manner and understand our clients’ needs during a global crisis," Yves Mirabaud, Senior Managing Partner of Mirabaud and Chairman of the Board of Mirabaud (Middle East) Limited.
"We aim to offer our clients in the Middle East alternative geographical locations for real estate investments," stated Mirabaud.
"We firmly believe in diversifying our clients’ wealth as their trusted family office. This goes in line with our conservative investment philosophy, as our clients have historically owned real estate assets in their own countries," he added.
Alain Baron, Limited Partner and Head of Mena Market at Mirabaud, said: "As we have now successfully closed two real estate transactions for almost $200 million during the last 6 months, we are on the continuous lookout for similar opportunities that will secure constant cash flow for our clients with a solid fundamental of capital preservation."
"These opportunities are rare due to their unique nature, but we always channel our efforts to source these deals for our clients," stated Baron.
Mirabaud sees an increasing potential for the real estate asset class since the interest rates globally are near zero, which shifts its regional clients’ appetites for less liquid assets and for higher returns, especially that other asset classes have no longer generous returns over a steady and stable period of time.
In the framework of this acquisition, Mirabaud’s Asset Management division was responsible for the investment selection, deal structuring, and portfolio management of a Luxembourg-based real estate partnership vehicle on behalf of its regional and international clientele.
King & Spalding, US legal counsel, was responsible for the legal documentation of the acquisition as well as the structuring of this investment vehicle. Exan Group was responsible for the sourcing and advisory services on the acquisition of the asset as well as retained property management of two of the office buildings.
Elvinger Hoss Prussen, Luxembourg legal counsel, took care of structuring Luxembourg partnerships and holding companies, while EY New York offered the tax counsel on acquisition vehicle structuring, and auditing of the US and Luxembourg holding companies.