Investcorp Sees Record Levels of Acquisition Activity During the Past 12 Months – Solidifies its Position as Top Private Gulf-Based Investor in US Real Estate

Monday 26 September 2016

Manama - MENA Herald: Investcorp, a leading provider and manager of alternative investment products, today announced that its U.S.-based real estate arm has acquired five multifamily apartment properties and five student housing properties in several major metropolitan markets across the United States. The conclusion of these deals represents the culmination of a 12-month period during which Investcorp saw record investment volume in real estate of approximately $1.6 billion of gross transaction value. According to Real Capital Analytics Investcorp has, for the past 10 years, been the top private Gulf-based investor in U.S. real estate.

The acquisitions are consistent with Investcorp’s strategy to invest in high-quality properties throughout key U.S. markets that it believes will provide attractive cash yields and upside.

Commenting on this acquisition, Mohammed Al-Shroogi, Co-CEO at Investcorp, said, “These new additions to the Investcorp U.S. real estate portfolio are a mix of multifamily and student housing properties, and are all located in high growth, major metropolitan areas. Each acquisition is in a strategic location where there is a significant demand for housing – whether that be from a robust employment market or housing needs stemming from students who attend nearby universities, all of these properties are located in regions with strong market fundamentals.”

Fahad Murad, Managing Director at Investcorp in Bahrain, said, “These seven properties are an excellent addition to our U.S. real estate portfolio and are a good mix of multifamily and student accommodation. They all fit within our strategy of acquiring properties in high-demand areas with strong market fundamentals and we will continue to build on our extensive experience in the U.S. market as we look for similar opportunities.”

Little Cottonwoods Apartments is a 379 unit, Class B, “garden style” apartment property located in the Tempe submarket of Phoenix, Arizona. Phoenix is projected to have amongst some of the highest percentage of employment growth of major U.S. markets over the next few years, and is also projected to experience significant rent growth. Little Cottonwoods was acquired in joint venture with TruAmerica and is the fourth transaction between the parties.

The Raleigh-Nashville multifamily portfolio is a four property, 1,176 unit, Class B apartment portfolio with three assets located in Raleigh, North Carolina and one in Nashville, Tennessee. The portfolio properties are in upscale suburban neighborhoods, offering convenient access to employment hubs. Raleigh boasts a healthy labor market, with new and expanded companies attracted by its affordable cost of living and high concentration of growing industries. Nashville has one of the lowest unemployment rates in the country, and a well-diversified economy driven by a skilled labor force, low cost of living and pro-business environment. The Raleigh-Nashville portfolio was acquired in joint venture with Redwood Capital Group and is the fourth transaction between the parties.

The Tampa and Indianapolis properties are comprised of two recently built, Class A student housing communities totaling 1,080 beds; with 722 beds located in Tampa and 358 in Indianapolis. These properties serve students attending the University of South Florida and Indiana University-Purdue University Indianapolis, respectively, and average close to 100 percent occupancy rates year over year. The Tampa-Indianapolis properties were acquired in joint venture with the Preiss Organization and represent the fifth transaction between the parties.

The Raleigh Student Housing portfolio is comprised of three recently built, Class A student housing communities totaling 890 beds in Raleigh, North Carolina. These properties serve students attending North Carolina State University and have historically maintained nearly100% occupancy. This portfolio was acquired in joint venture with the Preiss Organization and is the sixth transaction between the parties.

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