The real estate investment company Buligo Capital opens the year 2022 with a significant increase in the volume of transactions in the US real estate market, and continues the trend of expanding the portfolio, with an emphasis on increasing investments in logistics assets in the US. Thus recording an impressive achievement, with the volume of equity raised for projects (including, housing clusters, logistics properties, nursing homes and shopping centers) totaling $ 1 billion (cumulative investments).
During February, Buligo completed the transaction to acquire the Chicago Light Industrial Portfolio, which includes five 25,000-square-foot logistics properties in the city of Chicago, Illinois, for approximately $ 32 million. The total volume of the transaction, including transaction costs and amounts intended to improve the assets, is approximately $ 36 million, with the acquisition being financed by bank financing and investment by limited partners. Boligo, through a subsidiary, invested in the transaction (approximately $ 585,000).
At the same time, Boligo reports the completion of the acquisition of a last mile logistics property – McGaw Commerce Center, which includes three logistics and commercial buildings with an area of approximately 281 square meters in Maryland, USA. The immediate consideration for the property is approximately $ 42 million, with the total scope of the transaction, including the costs of improving the property, standing at $ 44.7 million. Buligo’s equity in the transaction, amounting to 5%, amounts to approximately $ 850,000.
In addition, during the month of February Boligo completed the purchase of 5.4 acres of land in the state of Colorado for $ 5.6 million. Boligo will establish on the ground an initiative project of sheltered housing, amounting to 72 housing units. The total estimated budget of the project will be about $ 75 million. Boligo will be the general partner in the transaction (GP) and will be entitled to transaction fees, development, management fees and success measures. Construction is scheduled to begin in the first half of the year.
Buligo also reports additional transactions in the multi-family field, which accounts for about 70% of the company’s projects. Boligo has completed the deal to initiate the Encore at Westgate housing group in North Carolina and updates that the project is expected to begin work in the coming weeks. The updated budget for the project will be about $ 61 million. The transaction was financed by bank financing and investment by limited partners, with Buligo’s share in equity standing at 5% of the total investment, amounting to approximately $ 1.2 million.
In addition, Boligo has announced that it intends to enter into an agreement with a local partner to initiate and establish a housing cluster of 324 housing units in Alabama, with an investment of approximately $ 70 million. The acquisition will be financed by bank financing and investment by limited partners. In the real estate segment, Boligo reports the sale of the Christina Mill housing complex, which includes 228 housing units in the state of Delaware, for $ 49 million.
Uri Tzurur, Partner and VP of Business Development at Boligo Capital: The American real estate market continues to gallop forward and create investment opportunities for Boligo. As part of its business strategy, Boligo will continue to expand its logistics assets sector in city centers. We anticipate that this segment will enjoy significant growth in the coming years. ”