SWAN Wealth US Multifamily Update: Strong conviction, strong progress

Northaven Completed within 24 months and over 40% rented

When SWAN Wealth Management launched its first Guernsey fund (AMC1) investing in US Multifamily Real Estate just over two years ago, our conviction was straightforward: US rental housing offered South African investors a rare combination of attractive hard currency returns, defensive income, and genuine portfolio diversification. That conviction has only strengthened.

AMC2: Three projects, all on track

Launched in June 2025, AMC2 invested directly into the equity of three high-quality US multifamily developments, each in partnership with experienced local developers in carefully selected high-growth locations:

• Northhaven: a 420-unit multifamily development in Sanford, Orlando, now in lease-up

• Southhaven: a 320-unit ground-up development in Lake Nona, Orlando, approximately 50% through construction

• 185 Marcy: a mixed-use repositioning project in Brooklyn, New York, where construction has now commenced following completion of the design and permitting phase

Almost a year on, all three projects are progressing on time and within budget. Northhaven's construction was completed within 24 months, under budget and on schedule, a strong reflection of the quality and professionalism of our US development partners. Southhaven is making excellent progress, and 185 Marcy's 14-month construction timeline is underway.

Thesis intact. If anything, stronger

2025 was a somewhat challenging year for US multifamily, with rental growth flat for the first time in over a decade as a wave of new supply came to market. However, that supply wave has now subsided, interest rates have eased over the period and valuations, measured by capitalisation rates, remain supportive.

Importantly, we have seen a clear flight to quality, with A-grade assets significantly outperforming B and C-grade properties. All three of our AMC2 investments are A-grade developments, which will serve investors well.

We are projecting AMC2 returns towards the upper end of our initial target range of 10–15% per annum, net of all fees, in US dollars.

Introducing AMC3: Private credit with equity-like returns

For AMC3, we are taking advantage of a specific and timely opportunity in US private credit. Many multifamily apartment buildings were acquired or refinanced during the ultra-low interest rate environment post-COVID. As those loans mature and owners face refinancing at today's higher rates, a compelling gap has emerged in the market.

AMC3 provides structured private credit solutions to high-quality multifamily assets, effectively stepping in as a lender rather than an equity investor. This structure offers equity-like returns with the protection of ranking ahead of equity in the capital structure, secured against quality real estate assets.

AMC3 targets net returns of 10% per annum over five years, with the additional comfort of debt-like downside protection. Valuations are more conservative than they were five years ago, rates are higher, and our position in the capital stack provides meaningful protection. It is a later-cycle opportunity structured with discipline.

A compelling alternative in a changing world

With global equity returns expected to moderate, private real assets, and US multifamily specifically, offer South African investors something increasingly rare: stable, USD-denominated returns with genuine diversification from listed markets and the defensive characteristics of essential housing demand.

SWAN's direct investment model, rigorous market selection, and alignment with proven local US partners continue to position these opportunities as highly attractive private investments for high-net-worth investors.

Risk disclaimer: Private assets are illiquid and not publicly traded. This investment is not regulated in South Africa. Investors should seek independent financial and tax advice before making any commitments.