Investcorp inks $120m deal for US properties

Investcorp, a Bahrain-based alternative asset manager, said on Wednesday that its US-based real estate arm has acquired two portfolios comprised of 16 high-quality office properties in the Greater Houston and Chicago metropolitan areas.

The combined 900,000 sq ft portfolio is valued at approximately $120m, the company said in a statement.

"These transactions are consistent with Investcorp's investment approach of seeking out high quality, stable, cash flowing assets at attractive valuations, and in close proximity to major economic centres," the statement said.

Both portfolios are located in high-income, densely populated areas, with limited new real estate supply or development, it added.

Mohammed Al-Shroogi, president for Gulf Business at Investcorp said: "We continue to focus on high quality assets in major metropolitan areas that benefit from macroeconomic demand drivers, such as healthcare, and can generate cash yields.

"We selected these two portfolios, in part, as a result of an existing tenant base affiliated with the growing healthcare industry. We believe they are a great addition to our growing office properties base."

The two acquisitions include 11 properties at the Oak Creek Centre located in suburban Chicago's East-West corridor in Lombard, Illinois, and five properties known as Pin Oak Park in Houston's West Loop.

The properties, with a combined occupancy rate of approximately 90 percent, are leased to a diverse roster of tenants, many of whom are involved in the healthcare industry, Investcorp said.

Last year, Investcorp acquired three office properties in Raleigh, North Carolina and one office property in Dallas, Texas.

Investcorp has also been active in the multi-family real estate market in the major Texas metropolitan areas of Austin, Dallas, and Houston, having acquired nine multi-family properties in these cities over the last 12 months.