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Bahrain’s Investcorp acquires 11 US properties for $370mn

Deal is the company’s largest US real estate portfolio acquisition in the last decade

Investcorp, a Bahrain-based global provider and manager of alternative investment products, has announced that it has acquired 11 new US multifamily properties for a combined purchase price of $370 million.

In a statement, the company said that the portfolio, which totals 2,615 units, is its largest US real estate portfolio acquisition completed in the last decade. The 11 properties are located in major US metro areas, where Investcorp has made previous acquisitions. These include Orlando and Tampa in Florida; Raleigh in North Carolina; Atlanta in Georgia; Philadelphia in Pennsylvania and St Louis in Missouri.

This diversified acquisition marks a very exciting milestone for our real estate investment team as this is the largest real estate portfolio, we have acquired in the U.S. market in more than 10 years,” said Mohammed Alardhi, executive chairman of Investcorp about the buy.

“As one of the most active investors in US multifamily real estate, our real estate investment business continues to be an important driver of our ambitious long-term global growth strategy on the path to $50 billion in AUM (assets under management),” remarked Alardhi.

Investcorp partnered with an affiliate of Equus Capital Partners, a Philadelphia-based vertically integrated real estate fund operator, in the transaction. Equus’ management affiliate, Madison Apartment Group, will also serve as the on-site property manager for the portfolio.

“Investcorp continues to see significant investment opportunities in US multifamily given it is a well-performing, highly liquid asset class that draws upon the current strength of the overall US economy and labour market,” said Michael Moriaty, principal in Real Estate Investment.

“Similar to many of our other recent multifamily investments, the assets in this portfolio are appealing because they are located in metro areas that are either key growth markets or population dense areas with new supply constraints,” stated Moriarty.

“Each property offers strong existing occupancy levels and we believe also offers the opportunity for value-add renovations,” he added.

Over the last 12 months, Investcorp ranks as a top-10 buyer of US multifamily units according to Real Capital Analytics, having acquired approximately 7,700 units. Since 1996, Investcorp has acquired more than 600 total properties with a combined value of more than $16 billion.

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