Sunbelt Multifamily Fund

A fund with a diversified portfolio of US multifamily properties in growing markets with favorable economic trends

FundReal Estate
Proj. net cash yieldProjected return
7.5% per annum (dist. quarterly) 9% per annum net IRR
FundReal Estate

Now trading on ADDXStarted on 6 July 2021

Investment highlights

  • Portfolio of five multifamily apartment complexes in Texas, Arizona, and Georgia

  • Positioned to take advantage of accelerated population growth in warmer, lower-cost-of-living US cities and states

  • Leverages the preferences of millennials who prefer to rent out of a desire for mobility, flexibility, and a lack of affordable single-family home ownership options

  • Positioned to take advantage of the resilient performance of US multifamily property through multiple economic cycles – it was the first sector to recover from the 2008 recession and has achieved superior returns through the recovery and expansion phases

  • Investcorp is the 4th largest cross-border buyer of US multifamily real estate, according to Real Capital Analytics (2019 and 2020), and manages a US$ 2.5 billion portfolio across 14,000+ units in the multifamily sector

  • Projected net cash yield of 7.5% p.a. (distributed quarterly) and target return of 9% p.a. net IRR

Key Trends Driving the US Multifamily Rental Market

Healthy Demand From The Growing Millennial Demographic: Demand for multifamily rental housing has been robust in recent years. For the large U.S. millennial population (ages 22-37), renting is the most common form of housing, and while millennials are reaching life stages in which home buying typically accelerates, they are slower in moving into homeownership than previous generations due to delays in marriage and starting families. Robust demand for multifamily rental housing is also supported by a lack of affordable home ownership options, as well as a desire for mobility and flexibility and to not be burdened with home maintenance costs.

Migration To The Sun Belt: Even prior to the onset of the pandemic, the rise in businesses and people moving from high cost-of-living cities like New York and San Francisco to more affordable cities with milder climates in so-called Sunbelt states, such as Texas, Georgia, and Arizona, has been noted. This trend has also accelerated through the pandemic, as the transition to widespread work-from-home business models has allowed workers to untether their lives from physical workplaces. Given that this change seems very likely to be a permanent feature of the American economy, the Forbes Real Estate Council expects increased migration to the Sunbelt to continue over the long term.

Sources: The Forbes Real Estate Council, CBRE, Motley Fool, CNBC, Business Insider, Investcorp

Sunbelt Multifamily Fund In 60 Seconds:

About The Manager: Investcorp

Founded in 1982, Investcorp is a global manager of investment specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes and infrastructure. It has a presence in 12 countries across the US, Europe, GCC and Asia, including India, China and Singapore. As of March 31, 2021, Investcorp Group had US $35.4 billion in total AUM, including assets managed by third party managers, and employs approximately 430 people from 45 nationalities globally across its offices.

Investcorp is a premier global real estate investment manager with US$ 20+ billion in assets acquired since 1996, and with US$ 6.7 billion of real estate assets currently under management in the U.S., Europe and India (as of 31 March 2021). 81% of Investcorp’s real estate investments are in North America, where it is focused on income-generating multifamily and industrial assets within regions exhibiting dynamic population and employment growth metrics.

About The Issuer: Prometheus-4 Pte. Ltd.

The company was incorporated as a special purpose vehicle for the sole purpose of the issuance of the security tokens and investing in Sunbelt Multifamily Portfolio.

Incorporated: 13 Jan 2021

Address: 9 Temasek Boulevard, #38-02, Singapore 038989

Key people

Mr Jonathan Dracos

Global Head of Real Estate in North America (Investcorp)

Mr Herbert Myers

Co-Head of Real Estate in North America (Investcorp)

Mr Michael O'Brien

Global Head of Real Estate in North America (Investcorp)

About The Manager: Investcorp

Founded in 1982, Investcorp is a global manager of investment specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes and infrastructure. It has a presence in 12 countries across the US, Europe, GCC and Asia, including India, China and Singapore. As of March 31, 2021, Investcorp Group had US $35.4 billion in total AUM, including assets managed by third party managers, and employs approximately 430 people from 45 nationalities globally across its offices.

Investcorp is a premier global real estate investment manager with US$ 20+ billion in assets acquired since 1996, and with US$ 6.7 billion of real estate assets currently under management in the U.S., Europe and India (as of 31 March 2021). 81% of Investcorp’s real estate investments are in North America, where it is focused on income-generating multifamily and industrial assets within regions exhibiting dynamic population and employment growth metrics.

About The Issuer: Prometheus-4 Pte. Ltd.

The company was incorporated as a special purpose vehicle for the sole purpose of the issuance of the security tokens and investing in Sunbelt Multifamily Portfolio.

Key people

Mr Jonathan Dracos

Global Head of Real Estate in North America (Investcorp)

Mr Herbert Myers

Co-Head of Real Estate in North America (Investcorp)

Mr Michael O'Brien

Global Head of Real Estate in North America (Investcorp)

Incorporated: 13 Jan 2021

Address: 9 Temasek Boulevard, #38-02, Singapore 038989


Disclaimer: The information above has been provided by Prometheus-4 Pte. Ltd. The contents of the above have not been verified by the Exchange and the Exchange assumes no responsibility for the contents above, including the accuracy, completeness or correctness of any of the information, statements or opinions made or reports contained in the content above. Any investment will be made with Prometheus-4 Pte. Ltd. and your return will differ from a direct investment in the Sunbelt Multifamily Portfolio. Projected return is not necessarily indicative and does not guarantee actual return. The past performances of funds managed by Investcorp or its affiliates are not necessarily indicative and do not guarantee the future performance of the Sunbelt Multifamily Portfolio. This is not an advertisement making an offer or calling attention to an offer or intended offer.

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