Investcorp today announced the acquisition of three major real estate assets in the US, bringing its real estate investments this year to $300 million.

Investcorp has just closed on its purchase of the seven-storey Park Tower office complex in Long Beach, California for an undisclosed price.  The deal gives Investcorp a Class A office tower in a major coastal metropolitan area.

Park Tower closely follows Investcorp’s $37 million acquisition of the Bethesda Health City building in Boynton Beach, Florida and of the Ashford, a 221-unit garden and townhouse community composed of 15 residential buildings located in Atlanta, Georgia, a statement said.

The three properties, acquired according to Shariah compliant structures have strong “going in” cash yields and enjoy high quality existing tenancy underpinned by the business and residential communities in Greater Los Angeles, the corridor between West Palm Beach and Ft. Lauderdale, and in the prestigious Central Perimeter area of Atlanta.

Mohammed Al Shroogi, Investcorp’s president for Gulf business, said: “Our historical experience in the US real estate market allowed us to identify and acquire these three Shariah compliant properties.  They complement our growing mix of investments selected for their strong and stable tenant histories, ties to growing metropolitan communities, and above-market cash yields. 

“We believe they provide us with yields that look especially attractive given the forecasted period of low interest rates and economic conditions we face today,” he said.

With these three acquisitions, Investcorp’s real estate team has invested approximately $300 million in eight new real estate deals this year, adding to its portfolio of retail, office, residential hospitality and medical facilities.  While many of the properties enjoy close proximity to large commercial and economic hubs, they lie in often overlooked real estate markets where it is easier to secure private deals at attractive valuations. 

The 133,000 sq ft Bethesda Health City building, acquired in a partial leaseback transaction from Bethesda Health Systems (BHS), is situated on a 40-acre campus and is currently 98 per cent leased.  The building has a track record of high occupancy and strong tenant retention that has consistently exceeded 90 per cent since its 1996 opening.

The Long Beach, California Park Tower office building is a 120,000 sq ft facility serving the communities of Los Angeles to the north and Orange County to the south.  It is currently 96 per cent occupied. – TradeArabia News Service