Investcorp exits 12 US residential multiple-occupancy assets

Bahrain’s Investcorp Capital has exited 12 residential multiple-occupancy real estate assets across five states in the United States for an approximate value of US$550 million.

Despite a tempered multifamily (multiple-occupancy real estate assets) market, Investcorp said in a filing with the Abu Dhabi Securities Exchange (ADX) that the exit was secured at a premium.

The 12 residential buildings have an average occupancy of 94 per cent and are situated in desirable rental markets in Atlanta, Georgia; Philadelphia, Pennsylvania; Raleigh, North Carolina; St Louis, Missouri; and Tampa and Orlando in Florida.

Mohamed Aamer, Interim Chief Executive Officer, commented: “Though rent growth has cooled from the highs we saw in recent years, the long-term fundamentals supporting the multifamily sector remain compelling. Our latest exits reflect the confidence in the sector, as well as Investcorp’s ability to capitalise on attractive opportunities and leverage operational expertise to create value.

“Our team will continue to evaluate properties across target markets, identifying opportunities that will deliver to shareholders.”

According to Real Capital Analytics, Investcorp Group is among the top-5 largest cross-border buyers of US real estate over the past five years. Almost 98 per cent of the firm’s portfolio consists of industrial or residential properties.

The firm was founded by Investcorp Group, a leading independent manager of alternative investments, with over US$55 billion in assets under management.