Investcorp sells US multifamily property portfolio

The asset manager ranks among the top 10 international investors in American real estate over the past five years, according to Real Capital Analytics

Owning a home hasn't brought the riches millenials imagine they've missed out on, but renting has become much more expensive. Bloomberg.
Owning a home hasn't brought the riches millenials imagine they've missed out on, but renting has become much more expensive. Bloomberg.

Bahrain's alternative investment manager Investcorp sold a portfolio of multifamily properties located in Raleigh, North Carolina to TruAmerica Multifamily for a combined total of approximately $109 million (Dh400m).

Investcorp purchased the 830-unit portfolio in 2016 and completed a number of upgrades to the properties, as part of its strategy to gain attractive, strong cash flow generating assets with opportunities for further capital appreciation.

“This transaction underscores our ability to successfully execute on our investment thesis as we added significant value to these strategically located properties over a three-year period, completing a number of renovations while also benefitting from the Raleigh market’s continued growth,” Babak Sultani, managing director in real estate investment at Investcorp said on Monday. “We look forward to continuing to build upon our track record in the multifamily space.”

Investcorp ranks among the top 10 international investors in US real estate over the past five years and is one of the country's top 50 overall investors in the sector for the same period, according to Real Capital Analytics.

Investcorp, in which Abu Dhabi's Mubadala Investment Company holds a 20 per cent stake, aims to double its assets under management over the next three years. Established in 1982, it is one of the oldest Middle East private equity companies and manages about $28 billion (Dh102.8bn) of assets across private equity, real estate, absolute return investments and credit. The company has made more than 185 private equity deals in the US, Europe, Middle East and North Africa region and Asia, across a range of sectors including retail and consumer products, technology, business services and industrials.

Investcorp has made more than 650 commercial and residential real estate investments in the US and Europe for more than $60bn in transaction value.

In August, the company posted a 5 per cent increase in full-year profit on higher fee income and record deal placement activity. Net income for the 12 months ending June 30 rose to $131m year-on-year despite a global economic slowdown and rising trade and geopolitical tensions, Investcorp said.

Updated: September 30, 2019 12:56 PM

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