GFH Bank B.S.C. · BAHRAIN:GFH
GFH Bank B.S.C — GFH Partners — Investor Presentation (August 2024)
26 slides from GFH Bank B.S.C's investor presentation, August 2024
Slide 1: GFHP US Student Housing IV Investor Presentation
GFHP US Student Housing IV Investor Presentation An opportunity to invest in a portfolio of student housing assets in the United States through a Shari’a compliant structure. Private & Confidential - August 2024 GFHP US Student Housing IV 1 Private & Confidential
Slide 2: Fund Summary & Key Merits
Fund Summary & Key Merits GFHP US Student Housing IV 2 Private & Confidential
Slide 3: US college enrollment surpassing 20 million students
With U.S. college enrollment surpassing 20 million students, the student housing market is strained by limited supply and growing demand resulting in promising investment opportunities in this sector. GFHP US Student Housing IV 3 Private & Confidential
Slide 4: Investment Opportunity Key Highlights
Investment Opportunity Key Highlights A fund comprised of Fund Size Cash on Cash Yield income yielding and development student US$ 85m 8.25% housing assets in the United States. Return on Investment Fund Term 11% p.a. 4 Years GFHP US Student Housing IV 4 Private & Confidential
Slide 5: Investment Merits
Investment Merits Robust Fundamentals & Strong Foundations Robust Fundamentals Solid sector with strong fundamentals Leading Growing Limited Supply Attractive and potential for University Selection Demand University budgets remain Asset Class further growth. constrained, limiting Education affordabi
Slide 6: Market Rationale
Market Rationale GFHP US Student Housing IV 6 Private & Confidential
Slide 7: Market Overview
Market Overview Source: Yardi, Cushman & Wakefield, Berkadia, CBRE Market Summary 2024 Strong Enrollment Growth Performance Dashboard for Year Ended 2023 US universities saw an increase of approximately 200,000 in undergraduate enrollments in spring 2024, driving up demand for student Rent Growth Y-
Slide 8: Market Fundamentals
Market Fundamentals Preleasing and Annual Rent Growth Yardi 200 Prelease Curves Preleasing for the Yardi 200 schools reached 90% in Yardi 200 Prelease Curves August 2024, matching the rate from May 2023 Yardi 200 Annual Rent Growth Average rent per bed was around $900 in May 2024, 100% up c.5% from
Slide 9: Market Fundamentals
Market Fundamentals Student Accommodation Construction and Pipeline Student Housing Construction The US is experiencing a significant student housing Student Housing Demand and Supply Imbalance shortage due to strong demand driven by enrollment Northeast growth. Undergraduate enrollment saw an incre
Slide 10: The Fund
The Fund GFHP US Student Housing IV 10 Private & Confidential
Slide 11: The Fund: Investment Strategy
The Fund Investment Strategy Invest in high-quality purpose-built student housing 1 Knoxville, Tennessee 2 Lexington, Kentucky properties close proximity to top-tier public 4-year universities, and drive value through leasing/marketing strategy, operational efficiencies, and strategic capital upgrad
Slide 12: The Fund: Portfolio Composition
The Fund Portfolio Composition Strategy Asset 1 Asset 2 Asset 3 Asset 4 Type Development Core Plus Core Plus Core Plus Location Knoxville, Tennessee Lexington, Kentucky Denton, Texas Minneapolis, Minnesota Adjacent University University of University of University of University of Tennessee Kentucky
Slide 13: Asset 1 - Knoxville, Tennessee
Asset 1 - Knoxville, Tennessee Asset Details Asset Overview Asset Merits Asset 1 Record Dynamic Enrollment Growth Type Development UTK witnessed its largest enrollment in Fall 2023, with a 7.4% year-over-year Location Knoxville, Tennessee increase (totaling more than 36,000 students). Furthermore, t
Slide 14: Asset 1 - Knoxville, Tennessee Location
Asset 1 - Knoxville, Tennessee Asset Location Gallery 0.3 miles 1 Location Located along Tennessee River in eastern Tennessee, and is just about 3 hours away from Nashville, Tennessee, Knoxville is with 112 miles of paved greenways and natural trails. Unparalleled views with direct access to the mai
Slide 15: Asset 2 - Lexington, Kentucky
Asset 2 - Lexington, Kentucky Asset Details Asset Overview Asset Merits Asset 2 Recent CapEx Enhancements Type Core Plus The previous owner recently spent US$ 3 million on common area renovations and Location Lexington, Kentucky enhancements over the last 3 years. Adjacent University University of K
Slide 16: Asset 2 - Lexington, Kentucky Location
Asset 2 - Lexington, Kentucky Asset Location Gallery 2 0.2 miles Location The building is located in close proximity to the town as well as the university. Additionally, in the 2020 census the city’s population was 322,570, making it the second-most populous city in Kentucky, and the 60th-most popul
Slide 17: Asset 3 - Denton, Texas
Asset 3 - Denton, Texas Asset Details Asset Overview Asset Merits Asset 3 Recent CapEx Enhancements Type Core Plus 204 beds of the total 432 renovated beds are achieving $50 premiums and once all Location Denton, Texas rooms are factored in, the property is expected to achieve 10% rent growth for th
Slide 18: Asset 3 - Denton, Texas Location
Asset 3 - Denton, Texas Asset Location Gallery 0.3 miles 3 Location Situated on Cleveland street, local residents have convenient access to a number of attractions nearby such as cafes, thrift shops, GFHP US Student Housing IV 18 Private & Confidential
Slide 19: Other Potential Student Housing Opportunities
Other Potential Student Housing Opportunities The Asset Manager has an active pipeline of student housing assets that will be pursued in the event that Assets Beds Year Built University Total Enrollment Profile Current Occupancy the targeted assets presented do not progress post 1 210 2016 Uni of Ge
Slide 20: Investment Selection Criteria
Investment Selection Criteria The Fund will capitalize on the following themes that are driving strong fundamentals within the student Objective Consistent Yield Total Return Enhancement housing space in the US: Allocation Majority Minority Strategy of the Fund Stabilized Income Generating Propertie
Slide 21: Asset Manager
Asset Manager GFHP US Student Housing IV 21 Private & Confidential
Slide 22: GFH Partners
GFH Partners Profile Geographical Presence Fund Professionals Locations & Subsidiaries London Madrid USA Bahrain Dubai AUM US$ 6 billion Riyadh Offices 6 GFH Offices GFH Subsidiaries Nael Mustafa Talal Al Mahroos Employees 15+ Chief Executive Officer Chief Operating Officer Profile Performance GFH P
Slide 23: Operating Partners
Operating Partners GFHP US Student Housing IV 23 Private & Confidential
Slide 24: Operating Partners
Operating Partners SQ Asset Management Vesper Holdings Assets Under Management Assets Under Management Founded 2013 Founded 2007 Managed Asset Managed Asset AUM $1.4+ billion AUM $2.0+ billion Number of Beds 13,900+ Number of Beds 30,000+ Track Record Net IRR of 21% Track Record Gross IRR of 48% Ass
Slide 25: Further Information
Further Information Disclaimer Investor Relations This Presentation is the lawful property of PPM. Neither GFH nor GFH Partners Ltd information; certain of the information used Nothing contained in this Presentation is GFH Financial Group B.S.C (together with (“GFHP” or “Investment Manager”) is acti
Slide 26: gfhpartners.com
gfhpartners.com GFHP US Student Housing IV 26 Private & Confidential