US real estate (Investcorp)
Investcorp's portfolio of multi-family properties is paying the fund manager handsome dividends. Image Credit: Gulf News Archive

Dubai: Investcorp, the Bahrain based asset management company, has gone for some profit taking - picking more than $900 million from selling eight multi-family properties in the US. These are located in Arizona, California, Florida and New York.

"We assembled this portfolio of highly-leased residential properties in key target markets with strong underlying economies, growing populations and limited supply," said Khulood Ebrahim, Real Estate Product Specialist at Investcorp. "The sales are a testament to our ability to consistently execute on our investment thesis to target strong cashflow generating assets with opportunities for further capital appreciation through active, hands-on management.”

The sell-off is interesting, as most industry watchers reckon the US property market will firm up in the months ahead. The prevailing wisdom is to hold on rather than sell.

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Time to net a profit

Clearly, Investcorp does not see it that way. “Investcorp has a strong, proven track-record of investing in the US real estate market in general and in multifamily assets in particular," said Tarek AlMahjoub, Head of UAE and Oman for Investcorp’s Private Wealth. "Our team’s deep market expertise allowed us to see the potential value of these assets and deliver solid execution on our operating plan.

"We are pleased with the outcome of these investments and we remain focused on identifying additional properties that generate solid cash flows and offer further potential upside.”