- Investcorp announced its three most recent equity investments in the US real estate market, which brings its real estate investments this year to $300 million and demonstrates the firm’s selective approach and focus on high yielding assets.
Investcorp has just closed on its purchase of the seven-story Park Tower office complex in Long Beach, California for an undisclosed price.
The deal gives Investcorp a Class A office tower in a major coastal metropolitan area.
Park Tower closely follows Investcorp’s $37 million acquisition of the Bethesda Health City building in Boynton Beach, Florida and of the Ashford, a 221 unit garden and townhouse community composed of 15 residential buildings located in Atlanta, Georgia.
The three properties, acquired according to Shariah-compliant structures have strong “going in” cash yields and enjoy high quality existing tenancy underpinned by the business and residential communities in Greater Los Angeles, the corridor between West Palm Beach and Ft. Lauderdale, and in the prestigious Central Perimeter area of Atlanta.
Mohammed Al-Shroogi, Investcorp’s president for Gulf Business, said: “Our historical experience in the US real estate market allowed us to identify and acquire these three Shariah compliant properties. They complement our growing mix of investments selected for their strong and stable tenant histories, ties to growing metropolitan communities, and above-market cash yields. We believe they provide us with yields that look especially attractive given the forecasted period of low interest rates and economic conditions we face today.”
With these three acquisitions, Investcorp’s real estate team has invested around $300 million in eight new real estate deals this year, adding to its portfolio of retail, office, residential hospitality and medical facilities.