Investcorp sells US real estate assets for $900m

Investcorp sells US real estate assets for $900m
The properties were garden and townhome-style apartment buildings located in major metropolitan areas in Arizona, California, Florida and New York.
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Updated 14 November 2020

Investcorp sells US real estate assets for $900m

Investcorp sells US real estate assets for $900m

Investcorp, a global provider and manager of alternative investment products, announced that it has recently sold eight multifamily properties located in Arizona, California, Florida and New York, to multiple buyers for more than $900 million.

The properties were garden and townhome-style apartment buildings located in major metropolitan areas in Arizona, California, Florida and New York. Investcorp acquired the assets in 2016 and 2017 and completed numerous value-enhancing initiatives, increasing average monthly revenue per unit by approximately 20 percent, implementing select property and amenity upgrades and interior unit renovations as well as benefiting from the targeted markets’ consistently strong housing fundamentals with favorable supply/demand dynamics.

Yasser Bajsair, CEO of Investcorp, Saudi Arabia, said: “The US multifamily real estate continues to be a key area of focus for us given its strong fundamentals and resiliency as everyone will always need a place to live. We will continue to leverage our deep market expertise and history of successfully investing in real estate to identify attractive opportunities that align with our criteria and that we believe to be well-positioned to create value for our investors.”

Khulood Ebrahim, real estate product specialist at Investcorp, said: “We are pleased with the outcome of the exits and for the value that we created for our investors and shareholders. We assembled this portfolio of highly leased residential properties in key target markets with strong underlying economies, growing populations and limited supply, and 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.”

Investcorp is a global investment manager, specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes and infrastructure. Founded in 1982, the company today has a presence in 12 countries across the US, Europe, GCC and Asia, including India, China and Singapore.