Investcorp Increases Holdings in U.S. Retail Assets with Acquisition of Houston's Deerbrook Marketplace

NEW YORK, April 26 /PRNewswire/ -- Investcorp Real Estate, the U.S.-based real estate arm of alternative investment manager Investcorp, today announced its acquisition of Deerbrook Marketplace, a 348,542 square foot retail shopping center in the greater Houston, Texas area.

The transaction reflects Investcorp's approach to acquire assets with strong fundamentals, such as stable anchor tenants and favorable long-term demographic trends. Located in north suburban Houston, Deerbrook is home to leading retail chains such as Sports Authority, Best Buy, Bed Bath and Beyond, Marshalls, OfficeMax, PetSmart and Old Navy.  Popular food chains Red Lobster and TGI Fridays also have restaurants at Deerbrook. The shopping center is currently 98.5 percent occupied, and will have limited lease rollover over the next two years.

Brian Kelley, a principal in Investcorp's real estate group, said: "While we maintain a cautious approach to investing, we will act decisively when we find stable and attractively valued assets. Deerbrook Marketplace is an attractive addition to our existing retail portfolio in Texas, where we have over 20 properties. Thanks to the stabilizing effect of the oil industry in the local economy, Texas has been impacted less by the economic downturn of the past two years than other U.S. states.  Spending trends across Texas have remained comparatively healthy and the retail sector has emerged earlier from the recession than in other parts of the U.S.  Investcorp's balance sheet strength enabled us to capitalize on these trends and close this transaction quickly at market pricing."

Herb Myers, a managing director in Investcorp's real estate group, added: "For the past 18 months we've been managing our existing real estate portfolio to preserve value for our investors. We have maintained a measured approach to new equity investments during this period of turmoil while continuing to build out our roster of debt and equity partner relationships in anticipation of increased activity during 2010 and 2011.  Now, as sellers of quality assets are returning to the market, we are well-positioned to execute transactions."

Mortgage financing for the Deerbrook transaction was provided by Capital Trust, Inc.  Global Fund Investments, an existing Investcorp operating partner in Investcorp's U.S. Retail IV portfolio, will provide leasing and property management services for Deerbrook Marketplace.

About Investcorp

Investcorp is a leading provider and manager of alternative investment products.  It has offices in New York, London and Bahrain and is publicly traded on the London Stock Exchange (IVC) and Bahrain Stock Exchange (INVCORP).  Investcorp has five lines of business:  private equity, hedge funds, real estate, technology investment, and Gulf growth capital.  Founded in 1982, Investcorp has grown to become one of the largest and most diverse alternative investment managers in terms of both product offerings and geography.

Further information is available at www.investcorp.com.

SOURCE Investcorp