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Abu Dhabi, UAETuesday 25 September 2018

Bahrain's Investcorp invests $492m in various US properties

The investments are part of a series of deals in the country

Investcorp makes it debut investment in China. Courtesy Investcorp
Investcorp makes it debut investment in China. Courtesy Investcorp

Investcorp, a Bahrain-based alternative investment company in which Abu Dhabi strategic firm Mubadala Investment Company is the biggest shareholder, invested $492 million in the US property market.

Investcorp invested in four individual rental apartment communities with 1,573 units and a student housing complex for $286m, the company said in a statement on its website on Monday. In addition, the Manama-listed company invested in four industrial portfolios comprising 2.7 million sq. ft. and over 40 buildings for in a $206m deal.

“These investments are a continuation of our real estate investment strategy and our commitment to growing our US real estate portfolio,” said Mohammed Al Shroogi, Investcorp’s Co-chief executive. “Investcorp has been a leader in this market since we entered over 20 years ago, and it remains a key part of our long-term strategy.”

Since its inception in 1982, Investcorp has made over 170 corporate investments in the US, Europe and the broader Middle East and North Africa region, including Turkey. The firm has invested across a range of sectors and more than 450 commercial and residential real estate investments in the US, with a transaction value exceeding $55bn. Mubadala owns 20 per cent of Investcorp, which oversees $22.2 billion in assets.

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Bahrain's Investcorp sells Dutch precision component manufacturer

Investcorp first half fiscal year net income increases 16 per cent

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The investment house known for buying and turning around businesses like Gucci, Saks Fifth Avenue and jewellery firm Tiffany & Co, reported a 16 per cent year-on-year increase in first half net income to $55.3m in its fiscal year that ends in June, owing to the firm’s global diversification strategy that shielded it from a slowdown in regional deals.

Among its diversification strategies, the firm has invested in US real estate. In November, its US real estate arm invested in two office buildings in New York City for $156m and in September it invested $350m in six multi-family properties in Florida and Arizona.

Investcorp is expanding its client coverage and its product lines as part of a strategy to boost its assets under management in the coming years through acquisitions and organic growth.

In March the company acquired a minority stake in US-based strategic communications and advisory firm ICR for an undisclosed sum.

Aside from its real estate holdings, the company's portfolio includes luxury Italian menswear specialist Corneliani, Danish luxury retailer Georg Jensen and European small and medium enterprise marketplace Ageras.

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