SUCCESSFUL EXIT NEGOTIATED FOR WATER RIDGE
One of the investments that we took over with the establishment of OrbVest was the Water Ridge Multi Family investment in Irving Texas. This investment has been underperforming from the start due to various market related factors. Our main goal here was to ensure capital preservation for our investors and to this end we engaged with the deal sponsor (Casoro Group) to negotiate an exit from this investment.
We are pleased to announce that after obtaining investors approval, we successfully negotiated with the Casoro Group to buy back the OrbVest investors shares. The sale will be done in two parts, with the first half of the payment already done in early September 2020 and the second half due at the end of November 2020. The final price negotiated will result in investors receiving back their original equity plus a capital gain of between 16% and 18% (before US taxes) by the end of December 2020.
Concerning the non-performance of this asset over the investment term, we are really pleased with the fact that we were able to ensure a full capital return plus a capital gain for investors. Our focus at OrbVest is Medical Office buildings and we will encourage all the Water Ridge Investors to re-invests their proceeds from the sale of Water Ridge into our current and future Medical Office offerings.