Bahrain’s Investcorp expands its US property portfolio to boost revenue

Investcorp, Bahrain’s alternative investment company in which Abu Dhabi’s Mubadala Investment Company is the biggest shareholder, invested $492 million (Dh1.8 billion) in the US property market.

The company invested in four individual rental apartment communities with 1,573 units and a student housing complex for $286m, Investcorp said in a statement on its website yesterday. In addition, the Manama-listed company invested in four industrial portfolios comprising 250,838 square metres and more than 40 buildings in a $206m deal.

“These investments are a continuation of our real estate investment strategy and our commitment to growing our US real estate portfolio,” said Mohammed Al Shroogi, Investcorp’s co-chief executive.

“Investcorp has been a leader in this market since we entered over 20 years ago, and it remains a key part of our longterm strategy.”

Since its inception in 1982, Investcorp has made over 170 corporate investments in the United States, Europe and the broader Middle East and North Africa region, including Turkey. The company has invested across a range of sectors and more than 450 commercial and residential real estate investments in the US, with a transaction value exceeding $55bn. Mubadala owns 20 per cent of Investcorp, which oversees $22.2bn in assets.

The investment house known for buying and turning around businesses like Gucci, Saks Fifth Avenue and jewellery firm Tiffany & Co reported a 16 per cent year-on-year increase in first half net income to $55.3m in its fiscal year that ends in June, owing to the firm’s global diversification strategy that shielded it from a slowdown in regional deals.

Among its diversification strategies, the firm has invested in US real estate. In November, its US real estate arm invested in two office buildings in New York City for $156m and in September it invested $350m in six multi-family properties in Florida and Arizona. Investcorp is expanding its client coverage and its product lines as part of a strategy to boost its assets under management in the coming years through acquisitions and organic growth.

In March, the company acquired a minority stake in USbased strategic communications and advisory firm ICR for an undisclosed sum.

Aside from its real estate holdings, the company’s portfolio includes luxury Italian menswear specialist Corneliani, Danish luxury retailer Georg Jensen and European small and medium enterprise marketplace Ageras.