Investcorp sells eight US buildings for more than $900m
Bahrain-listed alternative asset manager Investcorp yesterday said that it sold eight buildings in the US to several buyers for more than $900 million.
The townhouse- style apartment buildings are in key cities in Arizona, California, Florida and New York, Investcorp said.
“The sales are a testament to our ability to consistently execute on our investment thesis to target strong cash flow- generating assets, with opportunities for further capital appreciation through active, hands- on management,” said Khulood Ebrahim, property product specialist at the asset manager.
Investcorp acquired the assets in 2016 and 2017 and managed to raise the average monthly revenue of each unit by about 20 per cent through amenity upgrades and interior renovations.
“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,” said Tarek AlMahjoub, head of UAE and Oman operations at Invest
We remain focused on identifying properties that generate solid cash flows and offer further potential upside
TAREK ALMAHJOUB Head of UAE and Oman operations in Investcorp’s private wealth unit
corp’s private wealth division.
Investcorp has spent about $6 billion on residential and industrial property in the US and Europe.
Of that investment, it spent about $5bn in the US and $1bn in Europe.
The company, which has Mubadala Investment Company as its biggest shareholder, intends to spend about $ 4bn on residential buildings and warehouses in the US and Europe over the next two years, Jon Dracos, head of property investment at Investcorp, told The National earlier this month.
Investcorp has assets worth $32.2bn under management in the US and other countries in Europe, the GCC and Asia. The company invests in private equity, property, private credit and absolute return strategies.
Last month, it grew its industrial property portfolio to about $2bn after it bought 32 assets in the US for more than $280m.
Since its inception in 1996, Investcorp has spent more than $18bn on more than 800 properties around the world.