NEW YORK, Feb. 23, 2017 /PRNewswire/ -- Investcorp, a leading provider and manager of alternative investment products, today announced that its U.S.-based real estate arm has invested in three multifamily housing properties in New York, California, and Nevada for a total purchase price of nearly $400 million. All three properties are located in markets which benefit from robust fundamentals in the multifamily space.
Mohammed Alardhi, Executive Chairman of Investcorp said: "As we look to the next phase of growth for Investcorp, we have great confidence that the U.S. is a place where our investments will continue to serve our global client base well, as we believe the U.S. economy is poised for significant growth. We have a long history of investments in the U.S., and our $1.2 billion investment in residential properties in the past 18 months demonstrates our belief that the U.S. real estate market provides high-quality investments that will generate steady returns in the years to come."
"During the past 18 months we have continued to invest actively in the residential space, having purchased a diverse portfolio of well-leased multifamily and student housing assets", said Herb Myers a Managing Director in Real Estate Investment at Investcorp. "We believe that the outlook for the multifamily and student housing sectors remains strong and these investments generate attractive annual yields in a low-yielding global environment.
Atlantic Point is a 795 unit, Class A, 115 acre multifamily housing property located in Bellport, New York, which is located within the Nassau County-Suffolk County Metro Division. Suffolk County is one of the tightest multifamily housing markets in the U.S. with a vacancy rate of 2.9%. Given the high cost of land and strict zoning regulations which makes it difficult to build, the area has seen minimal new development since the 1990s. This has led to a favorable supply / demand imbalance in the overall market. The region is home to Brookhaven National Lab, Stony Brook University, Brookhaven Memorial Hospital and Stony Brook University Hospital.
The Highlands is a 556 unit, Class B, garden-style multifamily housing unit in Grand Terrace, California, in the Riverside-San Bernardino MSA. In this area, the multifamily market leads the nation in rent growth, having logged 5.1% in rent growth in 2016. Market-wide vacancy is projected to average 2.4% over the next five years.
Villas at Green Valley is a 609 unit, Class B, garden-style multifamily housing property located in Henderson, Nevada, in the Las Vegas MSA. The metro Las Vegas economy has rebounded strongly since the 2008/2009 downturn. As a result of factors like no state income tax, a low cost of living, and a favorable climate, population growth has exceeded 50% since 2000. Further, over the next five years, the metro area is projected to lead the nation in population, employment and real Gross Metropolitan Product (GMP) growth, all of which are expected to be solid drivers for multifamily demand.
Investcorp is a leading global provider and manager of alternative investments, offering such investments to its high-net-worth private and institutional clients on a global basis. Led by a new vision, Investcorp has embarked on an ambitious growth strategy to double assets under management ("AUM") in the medium term. The Firm continues to focus on generating investor and shareholder value through a disciplined investment approach in three lines of business: corporate investment, real estate and alternative investment solutions (formerly known as hedge funds).
As at June 30, 2016, the Investcorp Group had $10.8 billion in total 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.
Since its inception in 1982, the Investcorp Group has made over 170 corporate investments in the U.S., Europe and the Middle East and North Africa region, including Turkey, across a range of sectors including retail and consumer products, technology, business services and industrials, and more than 450 commercial and residential real estate investments in the US, for in excess of $53.784 billion in transaction value.
The Investcorp Group employs 331 people across its offices in New York, London, Bahrain, Abu Dhabi, Riyadh and Doha. It is publicly traded on the Bahrain Bourse (INVCORP). For further information, including our most recent periodic financial statements, which details our assets under management, please visit: www.investcorp.com.
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