9 Jan 2013
REAFFIRMS COMMITMENT TO STABLE, CASH FLOWING PROPERTIES IN MAJOR US MARKETS
Investcorp, a leading global provider and manager of alternative investment products, today announced 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 square foot portfolio is valued at approximately $120 million.
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 centers. Both portfolios are located in high-income, densely populated areas, with limited new real estate supply or development – typical characteristics of the geographic areas in which Investcorp focuses its investments.
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 Center located in suburban Chicago’s East-West corridor in Lombard, Illinois, and five properties known as Pin Oak Park in Houston’s West Loop (Bellaire submarket), less than four miles from the Texas Medical Center, the largest medical center in the world. 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 joined forces with two reputable operating partners for these transactions. In the case of Oak Creek Center, Investcorp partnered with Chicago-based Golub and Company, with whom they have entered into previous transactions. For Pin Oak Park, Investcorp teamed up with Houston-based Griffin Partners.
In 2012, among other transactions, Investcorp acquired three office properties in Raleigh, North Carolina and one office property in Dallas, Texas. Tenants in those properties include the National Institute of Health, in Raleigh and Oracle Corporation, in Dallas. 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.