MANAMA, 13 January 2008 — Bahrain-based investment bank Investcorp said yesterday it had bought an office property in New York for $1.4 billion from Dubai state investment agency Istithmar.
The offices are leased to 37 tenants including Deutsche Bank, Credit Suisse First Boston and GE Capital, and is home to Investcorp’s own New York offices.
The 280 Park Avenue property in Midtown Manhattan consists of one 31-story office tower fronting Park Avenue and one 43-storey office tower with a connecting 14-storey mid-rise office building. It has 29 passenger elevators and four freight elevators.
The building is considered an iconic real estate feature of New York, and is home to many well-known famous financial and investment institutions. Investcorp’s acquisition was made in partnership with Broadway Partners, an established real estate investment and management firm that is headquartered in New York and with whom Investcorp has successfully co-invested in previous investments.
Due to its excellent central location and building quality, it is considered one of the prime office addresses in New York.
Investcorp’s Managing Director Mazin Al-Khatib said: “This investment is in line with our strategy that makes us one of the largest investors in the US real estate market over the 25 year period.
280 Park Avenue is part of New York’s heritage, and is an address sought after by top institutions wanting a presence in the heart of Manhattan. The newly-purchased building is well equipped and requires minimal maintenance over the next 10 years.”
Al-Khatib said that the real estate market in New York, especially the office space, was very active and had achieved attractive returns due to increasing demand coupled with scarce availability.
He noted upcoming initiatives which will be undertaken to improve the operations at 280 Park Avenue aimed at increasing potential returns for clients. These included new rental policies, cementing relationships with tenants and controlling expenses.
Investcorp has offices in the Kingdom of Bahrain, London and New York and is publicly traded on the London Stock Exchange and Bahrain Stock Exchange. Investcorp has five lines of business: private equity, hedge funds, real estate, technology investment and Gulf growth capital. As of June 30, 2007, Investcorp had over $13 billion in invested assets under management.