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Abu Dhabi, UAEFriday 22 June 2018

Investcorp in $350 million US residential property deal

Bahrain-based asset manager targets high growth cities of Orlando, Jacksonville and Phoenix 

Visitors enter the Walt Disney Magic Kingdom park in Orlando, Florida. Bahrain's Investcorp is investing in sites in Orlando and Arizona and others in the US. David Ryder/Bloomberg
Visitors enter the Walt Disney Magic Kingdom park in Orlando, Florida. Bahrain's Investcorp is investing in sites in Orlando and Arizona and others in the US. David Ryder/Bloomberg

Investcorp, a Bahrain-based alternative asset manager, has invested US$350 million in six multi-family properties in Florida and Arizona.

"Investcorp has been one of the most active private [Arabian] Gulf investors in the US real estate market over the last decade," said Timothy Mattar, the managing director and head of the placement and relationship management team at Investcorp.

"Our strong track record of investing in this type of property gives us the edge we need to identify similar opportunities that we believe should deliver long-term value for our shareholders and clients."

Three of the properties are in Florida and three are in Arizona. Of the three properties in Florida, two are in Orlando and one is in Jacksonville. The properties in Orlando, Highpoint Club and Montevista at Windermere, have a combined 708 units. Orlando, best known for being the home of Disneyland, is expected to see growth in the next five years. The city has seen 3.2 per cent increase in employment year-on-year as of August 2017, Investcorp said, citing the US department of labour.

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The third property, Aqua Deerwood, is a 616-unit apartment in the upmarket Southside and Bay Meadows. The area has witnessed strong growth because it's close to employment hubs, entertainment and universities, the company said.

Meanwhile, in Arizona, Investcorp said it had purchased Arcadia Cove, Tuscany Palms and Midtown on Main which in total have 1,486 units. Like Orlando, Phoenix is also a high-growth market and has been ranked third in the US for employment growth.

Investcorp, in which Abu Dhabi’s Mubadala Investment Company is the largest shareholder with a 20 per cent stake, saw a 34 per cent year-on-year increase in net profit to $120.3 million from $90.1m in the financial year that ended in June.

In the second half, net profit more than doubled to $84.6m from $39.2m in a year-earlier period.

The company’s assets under management doubled to $21.3 billion at the end of the financial year, compared with a year-earlier period.