Investcorp Sees Record Levels of Acquisition Activity During the Past 12 Months – Solidifies its Position as Top Private Gulf-Based Investor in US Real Estate

Investcorp, a leading provider and manager of alternative investment products, today announced that its U.S.-based real estate arm has acquired five multifamily apartment properties and five student housing properties in several major metropolitan markets across the United States. 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 $1.6 billion of gross transaction value. According to Real Capital Analytics Investcorp has, for the past 10 years, been the top private Gulf-based investor in U.S. real estate.

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Little Cottonwoods Apartments in Tempe, Arizona (Photo: Business Wire)

The acquisitions are consistent with Investcorp’s strategy to invest in high-quality properties throughout key U.S. markets that it believes will provide attractive cash yields and upside.

“These additions to the Investcorp portfolio represent a continuation of Investcorp’s thesis of buying well-leased multifamily and student housing properties located in high growth, major metropolitan areas,” said Ryan Bassett, Principal, Real Estate Investment at Investcorp. “Each acquisition is in a strategic location where there is a significant demand for housing, whether from a robust employment market or housing needs stemming from students who attend nearby universities. In addition, all of these properties were acquired with pre-existing operating partners with whom we have invested historically.”

Little Cottonwoods Apartments is a 379 unit, Class B, “garden style” apartment property located in the Tempe submarket of Phoenix, Arizona. Phoenix is projected to have amongst some of the highest percentage of employment growth of major U.S. 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 neighborhoods, 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 totaling 1,080 beds; with 722 beds located in Tampa and 358 in Indianapolis. These properties serve students attending the University of South Florida and Indiana University-Purdue University Indianapolis, respectively, and average close to 100 percent occupancy rates year over year. The Tampa-Indianapolis properties were acquired in joint venture with the Preiss Organization and represent the fifth transaction between the parties.

The Raleigh Student Housing portfolio is comprised of three recently built, Class A student housing communities totaling 890 beds in Raleigh, North Carolina. These properties serve students attending North Carolina State University and have historically maintained nearly 100% occupancy. This portfolio was acquired in joint venture with the Preiss Organization and is the sixth transaction between the parties.

About Investcorp

Investcorp is a leading provider and manager of alternative investment products and is publicly traded on the Bahrain Bourse (INVCORP). The Investcorp Group has offices in London, Bahrain, New York, Saudi Arabia, Abu Dhabi and Doha. Investcorp has three business areas: corporate investment, real estate investment and alternative investment solutions (formerly known as hedge funds). As at June 30, 2016, the Investcorp Group had $10.8 billion in total assets under management (‘AUM’), including assets managed by third party managers and assets subject to a non-discretionary advisory mandate where Investcorp receives fees calculated on the basis of AUM. Further information, including our most recent periodic financial statements, which details our assets under management, is available at www.investcorp.com

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