Mirabaud buys out two Californian office buildings for a sum of $95.2M
Category: #business  By Pranali Mehta  Date: 2020-07-28
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Mirabaud buys out two Californian office buildings for a sum of $95.2M

The Asset Management division at Mirabaud has reportedly announced that it has acquired two single-tenant office buildings situated in San Jose, California. While the transaction involves a cost of $95.2 million, the deal has been carried out on behalf of the investors in the Gulf region.

According to Yves Mirabaud, the Senior Managing Partner at Mirabaud, the company intends to provide its Middle East clients with alternative geographical locations for investments in the real estate sector. He has further stated that the company works towards sourcing unique deals for its customers and deploys capital in trophy assets even during the global crisis. The company continues to demonstrate its capability to execute deals in a timely manner and understands the needs of its clientele during the COVID-19 pandemic, added Mirabaud.

As per sources, the acquisition will allow investors to benefit from the ongoing long-term leases, that comprise no termination options of more than 10 years and a remaining lease term. However, these benefits can be availed on the promise of cash-on-cash net returns following a tax of minimum 8 per cent. As reported, the fund has been successful in closing two real estate transactions amounting to $200 million during the past six months.

Alain Baron, the Limited Partner and Head of MENA Market at Mirabaud, has stated that the company is continuously searching for opportunities that provide secure constant cash flow to its customers based on the solid fundamental of capital preservation. He has also that such opportunities are rare due to their unique nature and the company works towards channelizing efforts to source these deals for its customers.

According to Mirabaud, the real estate asset class has an increasing potential as the global interest rates have neared almost zero. This has caused the regional customer appetites to shift for higher returns on less liquid assets, especially when other asset classes lack the ability to secure longer generous returns over a constant and stable period of time.

 

Source Credits:

https://gulfnews.com/business/company-releases/mirabaud-picks-up-two-san-jose-buildings-for-952m-1.1595832663525

 

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About Author

Pranali Mehta

Pranali Mehta    

Pranali Mehta boasts of over three years of experience as a content writer. Having completed her graduation in chemical engineering, she worked as safety & environment associate in a chemical company for a year. Harnessing her passion for writing however, Pranali deci...

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