I celebrated my birthday a week ago back in South Africa, in beautiful Cape Town, then with the executive team for a few days in Centurion, culminating in a trip with my family to a game park. Far from our small office in the centre of Manhattan, in a much slower world, I had the chance to write this message. Our OrbVest family have navigated more than a fair share of the challenges associated with a relatively young high growth business but have weathered the storm well, and have evolved into a strong, united team. Our simple goal is to preserve and grow our valued investors wealth, like it is our own. That has become even clearer over the last few weeks.
What really fuels a great company is results, and the team at OrbVest are starting to demonstrate to our investors and shareholders that we can deliver above expectations.
We are pleased that we can announce at last that we have successfully concluded of our first full cycle investment with the sale of 8 buildings in the USA making up the bulk of our Medical 1 and 2 portfolios. I would especially like to complement Machiel Lucas and his team for concluding a tough negotiation and finding solutions, together with our property partners, to extract the most value from the buyers, in a deal that became increasingly complicated.
The second win has been the closing of Glenridge Medical 22 where a rush of new investors over the last 10 days has left this offering oversubscribed, with investors rolling over to our next opportunity, Meridian Medical 23, which will only launch in the following 10 days.
What really excites me is the work we have put into exposing our fantastic opportunities to new investors. Not only do we welcome our first investors from a large group of certified financial advisers, but we welcome our first investor’s from Brazil, “Ben Vinda”.
Our story is spreading! My interview with Alec Hogg on Biznews was so well received that he will feature us on a regular basis on his business reports and Biznews Radio.
In search of low risk investments for our investors, friends and family, we have put more emphasis on buying future cash flow and less on IRR. While we have consistently managed to achieve returns which run just above 8% (cash on cash dividends paid quarterly in USD), the market is moving to a cycle of lower returns, caused mostly by the strong economic environment in America, where too much money is forcing Cap Rate compression.
Put simply, good buildings are getting more expensive and it has become a seller’s market. Our acquisitions team have done well to find 2 “sweet spot” buildings, one of which we can give you a sneak preview of below, but we have been working on extending our investment committee mandate, so that we can introduce to you more specialised nursing or senior living opportunities.
OrbVest continues to work hard on our stellar track record and grow our raving fan base, and I know that as we maintain our record, and we provide superb client service, word of mouth will do the rest.
Till next time,