In what it terms to be a “selective approach” with a “focus on high yielding assets,” Bahrain-listed investment bank Investcorp today announced its three most recent equity investments in the US real estate market, bringing its real estate investments to $300 million this year.
“Investcorp has just closed on its purchase of the seven-story Park Tower office complex in Long Beach, California for an undisclosed price,” the firm said in a media statement. That investment closely follows its $37m acquisition of the Bethesda Health City building in Boynton Beach, Florida and of the Ashford, a 221-unit garden and townhouse community in Atlanta, Georgia.
Khalid Al Rumaihi, Managing Director at Investcorp and regional head for UAE, said: “Despite the difficult economic conditions, Investcorp continues to secure investments with potential outperforming returns driven by its focus on strong fundamentals and concrete knowledge of the US real estate market. These three Shariah-compliant US properties form a great addition to the mix of investments in our real estate portfolio given their solid and stable tenancy record and excellent locations within urban communities.”
With the latest acquisitions, Investcorp’s real estate team has invested approximately $300m in eight new real estate deals this year, adding to its portfolio of retail, office, residential hospitality and medical facilities, the firm’s statement said.
“While many of the properties enjoy close proximity to large commercial and economic hubs, they lie in often overlooked real estate markets where it is easier to secure private deals at attractive valuations,” Investcorp said. “Examples of Investcorp’s strategy include the May 2011 acquisition of Residence Inn Manhattan Beach just outside of Los Angeles, and Princeton Forrestal Village, an office and retail complex in Princeton, New Jersey acquired in January 2011.”
The three properties have strong ‘going in’ cash yields and enjoy high quality existing tenancy underpinned by the business and residential communities in Greater Los Angeles, the corridor between West Palm Beach and Ft. Lauderdale, and in the prestigious Central Perimeter area of Atlanta, the firm said.