Investcorp acquires real estate assets worth US$250 million across the US - IFN

Investcorp acquires real estate assets worth US$250 million across the US

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US: Bahrain-based Investcorp, a manager and provider of alternative investment products, has successfully acquired several real estate assets in prime areas across the US. Through its real estate arm in the country, the Shariah compliant investment firm managed to purchase high quality office and retail assets in Illinois, California, Minnesota and New York at a combined value of US$250 million. Mohammed Al-Shroogi, the president of Gulf Business at Investcorp, explained that the acquisition is in line with the company’s approach of targeting high-quality assets in urban areas which have the potential to deliver attractive yields soon after they are acquired. “We believe that these properties also present an opportunity to improve their operating and leasing performance over a longer time horizon,” he said. Properties that were acquired include 1603 &1629 Orrington, Evanston in Illinois; Mountaingate Plaza, Simi Valley in California; Oracle & International Center in Minnesota; and Long Island Office Portfolio in New York. The assets comprised a total of more than 1.6 million square feet and have a combined occupancy rate of approximately 92%. Reporting its financials for the 2013 fiscal year ending on the 30th July, Investcorp recorded an increase in its net income to US$104.9 million, up 56% from US$67.4 million in 2012. The company’s gross operating income also witnessed an increase of 35% to US$361.8 million from US$267.1 million it registered last year. Earlier in October, Fitch Ratings affirmed Investcorp’s long-term issuer default rating at 'BB' with a stable outlook. In terms of its future ventures, Nemir A Kirdar, the executive chairman and CEO of the company, said: “As we enter our fourth decade, our plans to invest in our office network across the Gulf are well underway, with our Riyadh office expanded and new offices in Abu Dhabi and Doha pending regulatory approval.”