Investcorp adds $400m residential portfolio

Investcorp, a leading provider and manager of alternative investment products, yesterday announced that its US-based real estate arm, through separate transactions, has acquired a portfolio of eight residential properties in the metropolitan areas of Las Vegas, Denver, Chicago, Atlanta and Dallas for approximately $400 million.

These transactions take the firm’s total real estate acquisitions for the last 12 months past $1 billion, marking the continuation of a highly active period of investment for Investcorp’s real estate group.

All eight properties are well-occupied rental properties situated in major and growing US markets, demonstrating solid rent growth potential.

Investcorp intends to add value to the portfolio through renovation and capital expenditure, a strategy which the firm has successfully executed in previous multifamily investments.

Investcorp Co-CEO Mohammed Al-Shroogi weighed in, In an environment in which the US homeownership rate has dropped to a 50-year low, these acquisitions affirm our confidence in the attractiveness of investing in high-quality multifamily rental properties in major US markets.

Fahad Murad, MD at Investcorp – Bahrain, added, We were attracted to these properties by their rent growth potential and we believe they will make a significant contribution to the value of our portfolio.

 Investcorp acquired each of the properties through joint ventures with several local and regional operating partners. The eight properties acquired total more than 3.2 million square feet with approximately 3,400 multifamily units. The current average occupancy rate is approximately 96 per cent.