DOHA: Investcorp, a leading provider and manager of alternative investment products, yesterday announced that its US-based real estate arm has acquired five multifamily apartment properties and five student housing properties in several major metropolitan markets across the US.
The conclusion of these deals represents the culmination of a 12-month period during which Investcorp saw record investment volume in real estate of approximately $1.6bn of gross transaction value.
According to Real Capital Analytics Investcorp has, for the past 10 years, been the top private Gulf-based investor in US real estate.
The acquisitions are consistent with Investcorp’s strategy to invest in high-quality properties throughout key US markets that it believes will provide attractive cash yields and upside.
Johannes Glas (pictured), Managing Director at Investcorp in Qatar, said, “Investcorp continues to actively pursue the right opportunities in the US real estate market and these seven assets strengthen our already impressive portfolio. We look to invest in properties that are located in high-growth metropolitan markets that also demonstrate strong economic fundamentals; we believe that these latest investments are perfectly aligned with those criteria.”
Little Cottonwoods Apartments is a 379 unit, Class B, “garden style” apartment property located in the Tempe submarket of Phoenix, Arizona. Phoenixis projected to have amongst some of the highest percentage of employment growth of major US markets over the next few years, and is also projected to experience significant rent growth. Little Cottonwoods was acquired in joint venture with TruAmerica and is the fourth transaction between the parties. The Raleigh-Nashville multifamily portfolio is a four property, 1,176 unit, Class B apartment portfolio with three assets located in Raleigh, North Carolina and one in Nashville, Tennessee.
The portfolio properties are in upscale suburban neighbourhoods, offering convenient access to employment hubs.
Raleigh boasts a healthy labor market, with new and expanded companies attracted by its affordable cost of living and high concentration of growing industries.
Nashville has one of the lowest unemployment rates in the country, and a well-diversified economy driven by a skilled labor force, low cost of living and pro-business environment.
The Raleigh-Nashville portfolio was acquired in joint venture with Redwood Capital Group and is the fourth transaction between the parties.
The Tampa and Indianapolis properties are comprised of two recently built, Class A student housing communities located in Tampa and 358 in Indianapolis.
The Raleigh Student Housing portfolio is comprised of three recently built, Class A student housing communities in Raleigh, North Carolina.
