Global Real Estate Investment - Orbvest Specialized Investment

A YEAR LIKE NO OTHER


OrbVest finished 2020 on a high note, closing out Medical 29 in Arizona. The transaction capped a remarkable year of achievement, where we demonstrated the resilience of our healthcare niche through the Covid pandemic. 2020 also delivered robust growth in new and existing investors from around the world. In particular, OrbVest was delighted to welcome new investors from countries that included Australia, Canada, UAE and Saudi Arabia.

Since resuming operations after our well-deserved break in December, we can report with great satisfaction that we have picked up exactly where we left off.

Medical 30 has been well received and is now fully subscribed. We anticipate this deal will close in the coming month and will culminate in our second acquisition in the highly sought-after state of Arizona.
 
US Environment

As I write to you from New York State, a sense of optimism and momentum is building on a daily basis. The US is now vaccinating more than 1.7 million people per day and this number is expected to increase dramatically in April and May. As a result, Covid infections are expected to decline steadily and, as warmer spring weather approaches, the US economy is poised for a potentially strong rebound. The proposed $1.9 trillion stimulus package from the US government should counter any further impact from Covid and will undoubtedly assist with economic recovery. Against this backdrop, businesses are again starting to focus on expansion and banks are seeking growth in their lending portfolios.

Deals

OrbVest is launching a number of deals and projects in the coming months.

  1. ODH4 (LIVE): OrbVest successfully launched ODH1, 2 and 3 (OrbVest Diversified Holdings) during 2020 and has now activated ODH4 on our platform. Our loyal base of investors has overwhelmingly welcomed this product, which invests in a minimum of eight buildings. It achieves objectives for investors such as diversification and further reducing the risk in our already low-risk product. We are bullish that ODH4 will be met with a swift take-up from investors around the globe.
     
  2. Princeton300B (LIVE): During the past week, we launched our third deal in Princeton, New Jersey. Princeton 300B is located next to 300A, which we acquired in 2020. The building is 100% medical, with solid tenants and long leases in place.
     
  3. Further acquisitions: We have expanded our footprint and our network of great partners. As I write, we are engaged in final negotiations on a number of other fantastic medical office buildings and will be bringing these to our platform once we have signed the necessary Purchase and Sale Agreements (PSAs).
Successful Exit – 11.35% USD total returns per annum

OrbVest completed the sale of Medical 5 in February 2021. The investment, located in Atlanta, Georgia, has been held for five years. It delivered solid cash-on-cash returns culminating in an overall return (known as IRR – including the profit on the sale) of 11.35% per annum in USD. 

Deals requiring resolution

Dividends were temporarily halted on Medical 14 and 8, due to delays with tenant leasing and other issues caused by Covid. We are working hard at resolving these issues.

OrbVest has one remaining non-core asset that is being sold at present, namely Cypress Ridge in Texas. We have received strong interest from a number of parties and hope to conclude this sale shortly.

Conclusion:

Vaccination rollouts are accelerating in all countries globally and governments are beginning to unlock their economies again. We are therefore hopeful that, in the coming months, we will be approaching the final phase of the Covid pandemic and the world can look forward to a semblance of normality.
 
In the interim, the current challenges faced by the global economy, and the potentially aggressive rebound in business sentiment in the US, creates an ideal opportunity for OrbVest to assist investors from around the world to invest directly into medical real estate in the US and grow their wealth consistently and sustainably.
 
We are therefore encouraged by the strong start to the year that we have had. Given our large pipeline of deals in Q1 and Q2, and the growth in our investor base, we remain bullish on our prospects for 2021.

OrbVest would like to again thank all our valued community of investors for assisting us in breaking new records in 2020 and for your ongoing support.
 
 



 

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