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Abu Dhabi, UAESunday 16 December 2018

Bahrain's Investcorp buys $311m worth of US property

The alternative investment firm has been on an acquisition spree

Investcorp is snapping up assets as it seeks to nearly double its assets under management to reach $50bn in the medium-term from $22.6bn at the end of June. Investcorp
Investcorp is snapping up assets as it seeks to nearly double its assets under management to reach $50bn in the medium-term from $22.6bn at the end of June. Investcorp

Investcorp, the Bahrain-based firm that counts Mubadala Investment Company as its biggest shareholder, has acquired $311 million (Dh1.14 billion) worth of multi-family property in the US.

The acquisition, totalling 2,876 units in three major cities - Tampa, Houston and Salt Lake City - brings the company's total US multi-family property portfolio to 13,000, the company said in a statement on Wednesday. The Manama-listed firm has acquired over 3,400 multi-family units in key US cities over the last 12 months.

"The high occupancy rates of these property types, together with the positive outlook for the multi-family sector makes these six properties a natural fit to our existing portfolio of residential properties," said Hazem Ben-Gacem, co-chief executive officer of Investcorp. "With a solid growth strategy and an experienced team in place, we look forward to continue this positive momentum.”

Investcorp, in which Mubadala has a 20 per cent stake, has been on an acquisition spree this year.

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In September, the company said it was investing as much as $250m in the Chinese market, its first foray into the world's second biggest economy as it looks to expand its portfolio of investments globally.

Also in September, it acquired a minority stake in Swiss-regulated Banque Paris Bertrand Sturdza for an undisclosed sum. It also purchased its largest US warehouse portfolio, for approximately $300m in a single transaction.

Investcorp is snapping up assets as it seeks to nearly double its assets under management (AUM) to reach $50bn in the medium-term from $22.6bn at the end of June. Last year, the company acquired a $12bn AUM credit management business now known as Investcorp Credit Management.

Since its inception in 1982, Investcorp has made over 175 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 including more than 600 commercial and residential real estate investments in the US, with transaction values exceeding $57bn.