Wednesday 8 April 2020

Investcorp acquires two US residential properties for $164m

MANAMA, February 24, 2020

Investcorp, a leading global provider and manager of alternative investment products, has  announced that its US-based real estate team has bought two residential properties - Class B for rent apartments - in South Florida for $164 million.

Both the properties are located in neighbourhoods with a number of retail and entertainment attractions and are in close proximity to downtown Fort Lauderdale and South Florida’s employment hubs, said Investcorp in a statement.

These properties feature recently renovated interiors, upgraded common areas with amenities, including clubhouses and pools, it stated.

The acquisition of these two properties provides Investcorp with a 95% occupied portfolio of 836 units, said the statement.

According to Investcorp, the South Florida metropolitan area benefits from a strong, growing and diversified economy with a lower unemployment rate and higher job growth expectations compared to the US national average.

The acquisition further strengthens Investcorp’s US multifamily real estate portfolio and follows a highly active period of investment in multifamily properties after the firm ranked as the second largest international acquirer of US multifamily properties in calendar year 2019, according to Real Capital Analytics.

Yusef Al Yusef, the head of Gulf Institutional Clients Group at Investcorp, said: "Over the last several years, we have been actively building our US multifamily real estate portfolio by targeting properties in  strategic locations  that enable us to capitalize on the secular trend toward renting rather than  home ownership."

“The purchase of these properties in the attractive South Florida market aligns with our defined investment strategy of targeting strong cash flow generating assets that we believe are positioned to generate consistent returns while providing upside potential,” he added.

Multifamily property portfolios currently represent the largest part of Investcorp’s global real estate platform, with an approximate value of $2.3 billion.

The Bahrain-based group's multifamily portfolios span across 15 markets totaling 18 properties and more than 14,000 units. Since inception, the value of Investcorp’s real estate investments has surged to over $18 billion across more than 800 properties.-TradeArabia News Service


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