Abu Dhabi: Investcorp, the Bahrain-based investment firm on Monday announced that it acquired 11 “multifamily” properties in the United States for a total value of $370 million (Dh1.35 billion), marking the firm’s largest US real estate portfolio acquisition in the past decade.
“This diversified acquisition marks a very exciting milestone for our real estate investment team as this is the largest real estate portfolio we have acquired in the US market in more than 10 years,” said Mohammad Al Ardhi, Executive Chairman of Investcorp in a statement.
“As one of the most active investors in US multifamily real estate, our real estate investment business continues to be an important driver of our ambitious long-term global growth strategy on the path to $50 billion in AUM (Assets Under Management).”
The 11 properties acquired are located in six major metro areas across five states including Orlando, Florida, Tampa, Florida, Raleigh, North Carolina, Atlanta, Georgia, Philadelphia, Pennsylvania and St Louis, Missouri, Investcorp said.
Investcorp partnered with an affiliate of Equus Capital Partners, Ltd, a Philadelphia-based real estate fund operator for the transaction with Madison Apartment Group serving as the on-site property manager for the portfolio.
“We continue to see significant investment opportunities in US multifamily given it is a well-performing, highly liquid asset class that draws upon the current strength of the overall US economy and labour market,” said Michael Moriarty, Principal in Real Estate Investment at Investcorp.
“Similar to many of our other recent multifamily investments, the assets in this portfolio are appealing because they are located in metro areas that are either key growth markets or population dense areas with new supply constraints. Each property offers strong existing occupancy levels and we believe also offers the opportunity for value-add renovations.”
Investcorp acquired more than 600 properties with a combined value of more than $16 billion since 1996. It employs approximately 400 people across its offices in Bahrain, New York, London, Abu Dhabi, Riyadh, Doha, Mumbai and Singapore.