Bahrain’s Investcorp Capital has made a significant move by exiting 12 US residential multiple-occupancy assets across five states, valued at approximately US$550 million. This strategic decision comes as Investcorp continues to navigate the evolving multifamily real estate landscape, demonstrating confidence in its investment strategy and market expertise. The exit highlights the firm’s ability to adapt and seize opportunities within the competitive multiple-occupancy sector, showcasing its focus on delivering value to stakeholders.
Successful Exit Amid Market Challenges
Despite a slightly subdued market for multifamily assets, Investcorp indicated in a filing with the Abu Dhabi Securities Exchange (ADX) that the exit was secured at a premium. This suggests that, while market conditions have changed, Investcorp’s strategic timing and insight played a pivotal role in achieving favorable terms for the sale of these residential assets.
Prime Locations with High Occupancy
The 12 residential buildings, known for their prime locations, boast an average occupancy rate of 94 percent. They are situated in attractive rental markets such as Atlanta, Georgia; Philadelphia, Pennsylvania; Raleigh, North Carolina; St. Louis, Missouri; and the dynamic cities of Tampa and Orlando in Florida. The high occupancy levels are indicative of strong demand in these areas, further underpinning Investcorp’s decision to capitalize on these multifamily assets.
Investment Strategy and Market Outlook
Mohamed Aamer, Interim Chief Executive Officer, shared insights on the exit, stating: “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 capitalize on attractive opportunities and leverage operational expertise to create value.” This perspective illustrates the firm’s commitment to ongoing evaluation of properties across target markets, ensuring that new opportunities align with shareholder interests.
Investcorp’s Position in the Real Estate Market
According to Real Capital Analytics, Investcorp Group ranks among the top five largest cross-border buyers of US real estate over the past five years. Remarkably, nearly 98 percent of the firm’s portfolio comprises industrial or residential properties, underscoring its strategic focus in these high-demand sectors. Founded by Investcorp Group, a prominent independent manager of alternative investments, the firm currently oversees over US$55 billion in assets, reinforcing its significant footprint in the global real estate landscape.