Friday 29 May 2020

Investcorp acquires 11 US multifamily properties for $370m

MANAMA, June 10, 2019

Investcorp, a leading global provider and manager of alternative investment products, has announced that it had acquired 11 new US multifamily properties for a combined purchase price of $370 million.

The portfolio, totalling 2,615 units, is the Bahrain-based company's largest US real estate portfolio acquisition completed in the past decade.

The 11 properties in this portfolio are located in major US metro areas in which Investcorp made previous acquisitions.

The properties are located in six major metro areas across five states including Orlando and Tampa (Florida); Raleigh (North Carolina); Atlanta (Georgia) Philadelphia (Pennsylvania) and St Louis (Missouri).

On the big buy, executive chairman Mohammed Alardhi, said: "This diversified acquisition marks a very exciting milestone for our real estate investment team as this is the largest real estate portfolio we have acquired in the U.S. market in more than 10 years."

"As one of the most active investors in US multifamily real estate, our real estate investment business continues to be an important driver of our ambitious long-term global growth strategy on the path to $50 billion in AUM (assets under management)," remarked Alardhi.

Investcorp has partnered with an affiliate of Equus Capital Partners, a Philadelphia-based vertically integrated real estate fund operator, in this transaction.

Equus’ management affiliate, Madison Apartment Group, will also serve as the on-site property manager for the portfolio.

Michael Moriarty, principal in Real Estate Investment, said: "Investcorp continues to see significant investment opportunities in US multifamily given it is a well-performing, highly liquid asset class that draws upon the current strength of the overall US economy and labour market."

"Similar to many of our other recent multifamily investments, the assets in this portfolio are appealing because they are located in metro areas that are either key growth markets or population dense areas with new supply constraints," stated Moriarty.

"Each property offers strong existing occupancy levels and we believe also offers the opportunity for value-add renovations," he added.

Over the last 12 months, Investcorp ranks as a top-10 buyer of US multifamily units according to Real Capital Analytics, having acquired approximately 7,700 units. Since 1996, Investcorp has acquired more than 600 total properties with a combined value of more than $16 billion.-TradeArabia News Service


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