Investcorp expands realty portfolio

Manama: Investcorp, a leading provider and manager of alternative investment products, yesterday announced that its US-based real estate arm, through two separate transactions, has acquired five residential properties in the metropolitan areas of Boca Raton, Florida and Minneapolis, Minnesota for approximately $220 million.

The Boca Raton properties are comprised of three student housing properties in Boca Raton, FL. With 892 beds and a 98 per cent occupancy rate, these properties are the only off-campus, purpose-built, student housing facilities in the nearby area. The residential properties located in the suburbs of Minneapolis, MN are comprised of two multifamily apartment properties with 854 units and an average occupancy rate of 95 percent. Minneapolis has the lowest unemployment rate in the US at 2.9pc, and has outperformed the national unemployment rate.

As the home ownership rate in the US continues to decline, rental properties are in high demand,” said Mohammed Al Shroogi, Co-CEO at Investcorp. “All five of these properties are located in major metropolitan areas with strong market fundamentals including solid rent growth and high occupancy rates. We believe the unique Boca Raton properties serve a growing student population in the area, and the Minneapolis multifamily properties have significant upside potential associated with exterior and interior upgrades.”

Fahad Murad, Managing Director at Investcorp for Bahrain, said, “We are pleased to add these properties to Investcorp’s US real estate portfolio. A mix of multi-family and student accommodation, these properties benefit from high occupancy rates and locations in high-demand markets. We believe that these acquisitions further strengthen our presence in the US real estate market.”